[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2543 Engrossed in House (EH)]
<DOC>
117th CONGRESS
2d Session
H. R. 2543
_______________________________________________________________________
AN ACT
To amend the Federal Reserve Act to add additional demographic
reporting requirements, to modify the goals of the Federal Reserve
System, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Financial Services
Racial Equity, Inclusion, and Economic Justice Act''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--EQUITY IN MONETARY POLICY
Sec. 101. Duty to minimize and eliminate racial disparities.
Sec. 102. Appearances before and reports to the Congress.
TITLE II--DIVERSITY DATA COLLECTION AND REPORTING
Subtitle A--Diversity and Inclusion Data Accountability and
Transparency
Sec. 211. Disclosures by regulated entities.
Subtitle B--LGBTQ Business Equal Credit Enforcement and Investment
Sec. 221. Small business loan data collection.
TITLE III--ACCESS TO HOUSING AND LENDING
Subtitle A--Improving Language Access in Mortgage Servicing
Sec. 311. Findings.
Sec. 312. Language access requirements and resources.
Subtitle B--Fair Lending for All
Sec. 321. Office of Fair Lending Testing.
Sec. 322. Prohibition on credit discrimination.
Sec. 323. Criminal penalties for violations of the Equal Credit
Opportunity Act.
Sec. 324. Review of loan applications.
Sec. 325. Mortgage data collection.
Subtitle C--Promoting and Advancing Communities of Color Through
Inclusive Lending
Sec. 331. Strengthening diverse and mission-driven community financial
institutions.
Sec. 332. Capital investments, grants, and technology support for MDIs
and CDFIs.
Sec. 333. Supporting Young Entrepreneurs Program.
Sec. 334. Map of minority depository institutions and community
development financial institutions.
Sec. 335. Report on certified community development financial
institutions.
Sec. 336. Consultation and minimization of data requests.
Sec. 337. Access to the discount window of the Federal Reserve System
for MDIs and CDFIs.
Sec. 338. Study on securitization by CDFIs.
TITLE IV--DIVERSITY IN FINANCIAL INSTITUTIONS AND CORPORATIONS
Subtitle A--Promoting New and Diverse Depository Institutions
Sec. 411. Study and strategic plan.
Subtitle B--Promoting Diversity and Inclusion in Banking
Sec. 421. Diversity and inclusion ratings.
Subtitle C--Improving Corporate Governance Through Diversity
Sec. 431. Submission of data relating to diversity by issuers.
Sec. 432. Diversity advisory group.
Subtitle D--Ensuring Diversity in Community Banking
Sec. 441. Short title.
Sec. 442. Sense of Congress on funding the loan-loss reserve fund for
small dollar loans.
Sec. 443. Definitions.
Sec. 444. Inclusion of women's banks in the definition of minority
depository institution.
Sec. 445. Establishment of impact bank designation.
Sec. 446. Minority Depositories Advisory Committees.
Sec. 447. Federal deposits in minority depository institutions.
Sec. 448. Minority Bank Deposit Program.
Sec. 449. Diversity report and best practices.
Sec. 450. Investments in minority depository institutions and impact
banks.
Sec. 451. Report on covered mentor-protege programs.
Sec. 452. Custodial deposit program for covered minority depository
institutions and impact banks.
Sec. 453. Streamlined community development financial institution
applications and reporting.
Sec. 454. Task force on lending to small business concerns.
Subtitle E--Expanding Opportunity for Minority Depository Institutions
Sec. 461. Establishment of Financial Agent Mentor-Protege Program.
TITLE V--COMMUNITY DEVELOPMENT
Subtitle A--CDFI Bond Guarantee Program Improvement
Sec. 511. Sense of Congress.
Sec. 512. Guarantees for bonds and notes issued for community or
economic development purposes.
Sec. 513. Report on the CDFI bond guarantee program.
Subtitle B--Expanding Financial Access for Underserved Communities
Sec. 521. Credit union service to underserved areas.
Sec. 522. Member business lending in underserved areas.
Sec. 523. Underserved area defined.
Sec. 524. Reports by the National Credit Union Administration.
Sec. 525. Rule of construction.
TITLE VI--ENSURING DIVERSE LEADERSHIP OF THE FEDERAL RESERVE
Sec. 601. Short title.
Sec. 602. Congressional Findings.
Sec. 603. Federal reserve bank presidents.
Sec. 604. Technical adjustments.
TITLE VII--STUDYING BARRIERS TO HOUSING
Sec. 701. Short title.
Sec. 702. GAO study and report on reducing homelessness through public
housing and section 8 rental assistance.
TITLE VIII--STATE OF HOUSING IN THE UNITED STATES
Sec. 801. Interagency working group reports.
Sec. 802. Testimony on the state of housing affordability and supply.
TITLE XI--REPORT ON HOUSING FOR LGBTQ+ PERSONS
Sec. 901. HUD report.
TITLE X--``EXPANDING ACCESS TO CREDIT THROUGH CONSUMER-PERMISSIONED
DATA''
Sec. 1001. Short title.
Sec. 1002. Findings.
Sec. 1003. Requirement to consider additional credit information when
making mortgage loans.
TITLE XI--PAYMENT CHOICE
Sec. 1101. Short title.
Sec. 1102. Sense of congress.
Sec. 1103. Retail businesses prohibited from refusing cash payments.
TITLE I--EQUITY IN MONETARY POLICY
SEC. 101. DUTY TO MINIMIZE AND ELIMINATE RACIAL DISPARITIES.
The Federal Reserve Act (12 U.S.C. 221 et seq.) is amended by
inserting after section 2B the following:
``SEC. 2C. DUTY TO MINIMIZE AND ELIMINATE RACIAL DISPARITIES.
``The Board of Governors of the Federal Reserve System and the
Federal Open Market Committee shall exercise all duties and functions
in a manner that fosters the elimination of disparities across racial
and ethnic groups with respect to employment, income, wealth, and
access to affordable credit, including actions in carrying out--
``(1) monetary policy;
``(2) regulation and supervision of banks, thrifts, bank
holding companies, savings and loan holding companies, and
nonbank financial companies and systemically important
financial market utilities designated by the Financial
Stability Oversight Council;
``(3) operation of payment systems;
``(4) implementation of the Community Reinvestment Act of
1977;
``(5) enforcement of fair lending laws; and
``(6) community development functions.''.
SEC. 102. APPEARANCES BEFORE AND REPORTS TO THE CONGRESS.
(a) Section 2B of the Federal Reserve Act (12 U.S.C. 225b) is
amended--
(1) in subsection (a)(1)--
(A) in subparagraph (A), by striking ``and'' at the
end; and
(B) by striking subparagraph (B) and inserting the
following:
``(B) economic developments and prospects for the
future described in the report required in subsection
(b), including a discussion of disparities in
employment, income, and wealth across racial and ethnic
groups as well as other specific segments of the
population; and
``(C) plans, activities, and actions of the Board
and the Federal Open Market Committee to minimize and
eliminate disparities across racial and ethnic groups
with respect to employment, wages, wealth, and access
to affordable credit pursuant to section 2C.''; and
(2) in subsection (b)--
(A) by striking ``The Board'' and inserting the
following:
``(1) In general.--The Board''; and
(B) by adding at the end the following:
``(2) Trend information.--
``(A) In general.--Each report required under
paragraph (1) shall include recent trends in the
unemployment rate, labor force participation rate,
employment to population ratio, median household
income, and change in real earnings.
``(B) Demographic information.--The trends required
to be reported under subparagraph (A) shall include--
``(i) a comparison among different
demographic groups, including race, ethnicity,
gender, individuals with dependent children
under the age of 18 (to the extent possible),
educational attainment, age, disability (as
such term is defined in section 3 of the
Americans with Disabilities Act of 1990), and
shall also provide cross-sectional data on the
interaction between these groups and note any
statistically significant findings, to the
extent available; and
``(ii) data disaggregated by ethnic
subgroup, to the extent available.
``(C) Ethnic subgroup defined.--The term `ethnic
subgroup' means a social group that--
``(i) has a distinct social, racial,
geographic, national origin, or cultural
identity; and
``(ii) is susceptible to being
disadvantaged.''.
(b) The Board of Governors of the Federal Reserve System, in
consultation with the Federal Deposit Insurance Corporation, the Office
of the Comptroller of the Currency, the National Credit Union
Administration, and the Bureau of Consumer Financial Protection, shall
issue a report to Congress containing the plans, activities, and
actions of the Board of Governors of the Federal Reserve System to
minimize and eliminate disparities across racial and ethnic groups with
respect to access to financial products for the purpose of restoration,
renovations, or repair following a federally-declared disaster.
TITLE II--DIVERSITY DATA COLLECTION AND REPORTING
Subtitle A--Diversity and Inclusion Data Accountability and
Transparency
SEC. 211. DISCLOSURES BY REGULATED ENTITIES.
Section 342(b) of the Dodd-Frank Wall Street Reform and Consumer
Protection Act (12 U.S.C. 5452(b)) is amended by adding at the end the
following:
``(5) Disclosures by regulated entities.--The Director of
each Office shall require entities with 100 employees or
greater regulated by the applicable agency to provide such
information as may be required to carry out the duties of the
Director.''.
Subtitle B--LGBTQ Business Equal Credit Enforcement and Investment
SEC. 221. SMALL BUSINESS LOAN DATA COLLECTION.
(a) In General.--Section 704B of the Equal Credit Opportunity Act
(15 U.S.C. 1691c-2) is amended--
(1) by inserting ``LGBTQ-owned,'' after ``minority-owned,''
each place such term appears;
(2) in subsection (e)(2)(G), by inserting ``, sexual
orientation, gender identity'' after ``sex''; and
(3) in subsection (h), by adding at the end the following:
``(7) LGBTQ-owned business.--The term `LGBTQ-owned
business' means a business--
``(A) more than 50 percent of the ownership or
control of which is held by 1 or more individuals self-
identifying as lesbian, gay, bisexual, transgender, or
queer; and
``(B) more than 50 percent of the net profit or
loss of which accrues to 1 or more individuals self-
identifying as lesbian, gay, bisexual, transgender, or
queer.''.
(b) Sense of Congress.--It is the sense of the Congress that the
term ``sex'', as used within the Equal Credit Opportunity Act, includes
an individual's sexual orientation and gender identity, and that this
section, in part, clarifies that the sex, sexual orientation, and
gender identity of the principal owners of a business should be
collected under section 704B of the Equal Credit Opportunity Act as
three separate forms of information.
TITLE III--ACCESS TO HOUSING AND LENDING
Subtitle A--Improving Language Access in Mortgage Servicing
SEC. 311. FINDINGS.
The Congress finds the following:
(1) Housing is the largest portion of most household
budgets in the United States and therefore a foundational
component of financial access and opportunity.
(2) Due in part to a legacy of discrimination in the United
States, people of color are disproportionately experiencing
homelessness, are disproportionately renting, and
disproportionately paying unaffordable rents, which acts as a
barrier to homeownership.
(3) Access to fair and affordable housing, both rental and
homeownership opportunities, is critical to upward economic
mobility. This includes addressing language barriers in
mortgage servicing to ensure borrowers have culturally
sensitive, in-language access to critical lending information,
can enter into fair and sustainable homeownership, and preserve
their home equity.
SEC. 312. LANGUAGE ACCESS REQUIREMENTS AND RESOURCES.
(a) In General.--Chapter 2 of title I of the Truth in Lending Act
(15 U.S.C. 1631 et seq.) is amended by inserting after section 129H the
following:
``Sec. 129I. Language access requirements.
``(a) Standard Language Preference Form.--Not later than 90 days
after the date of the enactment of this section, the Director of the
Bureau of Consumer Financial Protection shall, after consulting with
the Secretary of Agriculture, the Director of the Federal Housing
Finance Agency, the Secretary of Veterans Affairs, and the Commissioner
of the Federal Housing Authority, issue a rule establishing a standard
language preference form that includes a standard language preference
question asked in each of the 8 languages most commonly spoken by
individuals with limited English proficiency, as determined by the
Director of the Bureau using information published by the Director of
the Bureau of the Census.
``(b) Requirements for Creditors.--
``(1) Use of standard language preference form by
creditors.--
``(A) Inclusion in application.--Each creditor
shall include, as part of the application package used
in connection with a residential mortgage loan, the
standard language preference form established by the
Director of the Bureau under subsection (a).
``(B) Inclusion of disclosure.--Each creditor may
include with such standard language preference form a
disclosure stating that--
``(i) documents and services may not be
available in the preferred language indicated
by the consumer on the standard language
preference form; and
``(ii) the English version of any document
to which such form applies is the official and
operative document and the translated version
is for informational purposes only.
``(C) Documentation and transfer of preferred
language information.--If a creditor receives
information about a language preference of a consumer
through the standard language preference form from
another creditor or a servicer or a borrower, such
creditor shall document this language preference in
each file and electronic file of information associated
with such consumer and shall transfer such information
and the standard language preference form to any
servicer of the loan.
``(2) Provision of translated documents.--If a Federal
agency or a State or local agency in the State or locality in
which the residential property is located has produced a
translation of a document used in association with the
origination of a residential mortgage loan in the preferred
language of a consumer documented by a creditor pursuant to
paragraph (1)(C), such creditor shall--
``(A) provide such translated document in addition
to any English version of such document that is
provided to such consumer who indicated such preferred
language; and
``(B) include in the English and translated
versions--
``(i) a notice indicating that the English
version of such document is the official and
operative document and the translated version
is for informational purposes only;
``(ii) the website established under
paragraph (6); and
``(iii) a notice of any available oral
interpretation services described in paragraph
(3).
``(3) Oral interpretation services.--
``(A) In general.--If a creditor receives
information about a language preference of a consumer
through the standard language preference form from
another creditor or a servicer or a borrower, such
creditor shall provide oral interpretation to such
consumer.
``(B) Creditor-provided oral interpretation
services.--If a creditor is required under subparagraph
(A) to provide oral interpretation to a consumer, such
creditor--
``(i) shall ensure qualified oral
interpretation services, as defined by the
Director of the Bureau, are made available in
the preferred language of the borrower for all
oral communications between the creditor and
the borrower; and
``(ii) may provide such services through
qualified staff of the creditor or a third
party.
``(C) American sign language interpretation
services.--If a creditor is required under subparagraph
(A) to provide oral interpretation services to a
consumer, and if such consumer has indicated a
preference for American Sign Language, such creditor
shall ensure qualified American Sign Language
interpretation services, as defined by the Director of
the Bureau, are made available to the consumer for all
oral communications between such creditor and the
consumer, where such American Sign Language
interpretation services may be provided by qualified
staff of the creditor or a qualified third party.
``(4) Notice of available language services.--If a creditor
receives information about a language preference of a consumer
through the standard language preference form from another
creditor or a servicer or a borrower, such creditor shall not
later than 30 business days after receiving such information
and not less than 14 days before any closing, notify such
consumer in writing, in the preferred language of the consumer,
of any language services available, including the services
described in paragraphs (2) and (3).
``(5) Transfer of language preference information.--If a
creditor transfers the servicing associated with a residential
mortgage loan, such creditor shall notify the transferee
servicer at the time of transfer of any known language
preference of the consumer associated with such residential
mortgage loan.
``(6) Information on website.--Each creditor shall publish
on the website of the creditor--
``(A) links to and explanatory information about
the websites maintained by the Secretary of Housing and
Urban Development and the Director of the Bureau of
Consumer Financial Protection that identify housing
counselors approved by the Department of Housing and
Urban Development; and
``(B) a link to and explanatory information about
the language resources website established by the
Director of the Bureau of Consumer Financial
Protection, the Secretary of Housing and Urban
Development, the Director of the Federal Housing
Finance Agency, the Secretary of Agriculture, and the
Secretary of Veterans Affairs under section 312(f) of
the Financial Services Racial Equity, Inclusion, and
Economic Justice Act.
``(c) Translation of Mortgage Documents.--With respect to each
document published by the Federal Housing Finance Agency, the Bureau of
Consumer Financial Protection, the Department of Housing and Urban
Development, the Department of Veterans Affairs, and the Department of
Agriculture and used in association with a residential mortgage loan,
including origination and servicing documents, the Director of the
Bureau of Consumer Financial Protection and the Director of the Federal
Housing Finance Agency shall jointly--
``(1) not later than 180 days after the date of the
enactment of this section, publish versions of such documents
translated into each of the 8 languages most commonly spoken by
individuals with limited English proficiency, as determined by
the Director of the Bureau of Consumer Financial Protection
using information published by the Director of the Bureau of
the Census; and
``(2) not later than 3 years after the date of the
enactment of this section, publish versions of such documents
translated into at least 4 additional languages spoken by
individuals with limited English proficiency that are
regionally prevalent in the United States, as determined by the
Director of the Bureau of Consumer Financial Protection using
information published by the Director of the Bureau of the
Census.
``(d) Rulemaking.--The Director of the Bureau of Consumer Financial
Protection shall, not later than 1 year after the date of the enactment
of this section, issue regulations to implement this section that shall
take effect not later than 18 months after the date of the enactment of
this section.''.
(b) Requirements for Servicers.--Section 6 of the Real Estate
Settlement Procedures Act of 1974 is amended by adding at the end the
following:
``(n) Language Access Requirements.--
``(1) In general.--
``(A) Inclusion in notices.--Each servicer shall
include the standard language preference form
established by the Director of the Bureau under
subsection (a) with--
``(i) any notice required under section
1024.39(b) of title 12, Code of Federal
Regulations;
``(ii) any notice required under section
5(c);
``(iii) any notice required under section
1024.41(b)(2) of title 12, Code of Federal
Regulations;
``(iv) any notice required under section
1024.41(c)(2)(iii) of title 12, Code of Federal
Regulations; and
``(v) any other additional notice as the
Director of the Bureau of Consumer Financial
Protection determines necessary.
``(B) Inclusion of disclosures.--A servicer may
include with the standard language preference form a
disclosure stating that documents and services may not
be available in the preferred language of the borrower
indicated by the consumer on the standard language
preference form.
``(C) Documentation and transfer of preferred
language information.--If a servicer receives
information about a language preference of a borrower
through the standard language preference form from
another servicer or creditor or from the borrower, such
servicer shall document this language preference in
each file or electronic file of information associated
with such borrower.
``(2) Required language services for servicers.--
``(A) Provision of translated documents.--If a
Federal agency, or a State or local agency in the State
or locality in which the property securing the
federally related mortgage loan is to be located has
produced a translation of a document used in
association with the servicing of a federally related
mortgage loan in the preferred language of a borrower
as documented by the servicer pursuant to paragraph
(1)(C), the servicer shall--
``(i) provide such translated document in
addition to any English version of such
document that is provided to such borrower; and
``(ii) include a notice on the English and
translated versions, in the preferred language
of the borrower, indicating that the English
version is the official and operative document
and the translated version is for informational
purposes only.
``(B) Oral interpretation services.--
``(i) In general.--If a servicer receives
information about a language preference of a
borrower through the standard language
preference form from another creditor or a
servicer or from the borrower, such servicer
shall provide oral interpretation to such
borrower.
``(ii) Oral interpretation services.--If a
servicer is required under subparagraph (A) to
provide oral interpretation services to a
borrower, such servicer--
``(I) shall ensure qualified oral
interpretation services, as defined by
the Director of the Bureau, are made
available in the preferred language of
the borrower for all oral
communications between the servicer and
the borrower; and
``(II) may provide such services
through qualified staff of the borrower
or a qualified third party.
``(3) Notice of available language services.--If a servicer
receives information about a language preference of a borrower
through the standard language preference form from another
creditor or a servicer or from the borrower, such servicer
shall, not later than 30 business days after receiving such
information and not less than 30 days before any foreclosure
sale of the property secured by the federally related mortgage
loan of the borrower, notify such borrower in writing, in the
preferred language of the borrower, of any language services
available, including the services required under paragraph (2).
``(4) Transfer of language preference information.--If a
servicer transfers the servicing associated with a federally
related mortgage loan, such servicer shall notify the
transferee servicer at the time of the transfer of servicing of
any known language preference of the borrower associated with
such federally related mortgage loan.
``(5) Standard language preference form defined.--The term
`standard language preference form' means the standard language
preference form established by the Director of the Bureau under
section 129I of the Truth in Lending Act.
``(6) Information on website.--Each servicer shall publish
on its website, in a clear and conspicuous manner--
``(A) links to and information about the websites
maintained by the Secretary of Housing and Urban
Development and the Director of the Bureau of Consumer
Financial Protection that identify housing counselors
approved by the Department of Housing and Urban
Development; and
``(B) a link to and information about the language
resources website established by the Director of the
Bureau of Consumer Financial Protection, the Secretary
of Housing and Urban Development, the Director of the
Federal Housing Finance Agency, the Secretary of
Agriculture, and the Secretary of Veterans Affairs
under section 312(f) of the Financial Services Racial
Equity, Inclusion, and Economic Justice Act.
``(7) Translation of mortgage documents.--With respect to
each document published by the Federal Housing Finance Agency
and the Bureau of Consumer Financial Protection, and used in
association with a federally related mortgage loan, including
origination and servicing documents, the Director of the Bureau
of Consumer Financial Protection and the Director of the
Federal Housing Finance Agency shall, jointly--
``(A) not later than 180 days after the date of the
enactment of this section, publish versions of such
documents translated into each of the 8 languages most
commonly spoken by individuals with limited English
proficiency, as determined by the Director of the
Bureau of Consumer Financial Protection using
information published by the Director of the Bureau of
the Census; and
``(B) not later than 3 years after the date of the
enactment of this section, publish versions of such
documents translated into at least 4 additional
languages spoken by individuals with limited English
proficiency that are regionally prevalent in the United
States, as determined by the Director of the Bureau of
Consumer Financial Protection using information
published by the Director of the Bureau of the Census.
``(8) Rulemaking.--The Director of the Bureau of Consumer
Financial Protection shall issue regulations to implement this
subsection. A final rule shall be issued by the Director not
later than 12 months after the date of enactment of this
subsection, and the effective date shall be not later than 18
months after the date of enactment of this subsection.''.
(c) Clerical Amendment.--The table of sections in chapter 2 of the
Truth in Lending Act (15 U.S.C. 1631 et seq) is amended by inserting
after the item relating to section 129H the following:
``129I. Preferred language requirements.''.
(d) Report.--Not later than 1 year after the date of the enactment
of this section, and each year thereafter, the Director of the Bureau
of Consumer Financial Protection, the Secretary of Housing and Urban
Development, the Director of the Federal Housing Finance Agency, the
Secretary of Agriculture, and the Secretary of Veterans Affairs shall
submit a report to the Congress that contains--
(1) regulatory recommendations to enhance mortgage
origination and servicing processes for persons with a
preferred language that is not English;
(2) a description of any legislative changes needed to
provide authority necessary to implement the regulatory
recommendations; and
(3) a description of any progress on the implementation of
any legislative or regulatory recommendation made in a previous
report.
(e) Community Financial Institutions Report.--Not later than 2
years after the date of the enactment of this Act, the Comptroller
General of the United States shall study and report to Congress on the
effects of the implementation of this section and the amendments made
by this section on insured depository institutions with less than
$10,000,000,000 in total assets, and the communities they serve, along
with any regulatory or legislative recommendations to advance the
purposes of this section.
(f) Language Resource Website.--
(1) In general.--The Director of the Bureau of Consumer
Financial Protection, the Secretary of Housing and Urban
Development, the Director of the Federal Housing Finance
Agency, the Secretary of Agriculture, and the Secretary of
Veterans Affairs shall jointly not later than 1 year after the
date of the enactment of this section establish and maintain a
website that provides language resources for creditors,
servicers, and consumers.
(2) Website requirements.--The website developed pursuant
to paragraph (1) shall include--
(A) the translations of documents published
pursuant to section 129I(c) of the Truth in Lending Act
and section 6(n)(7) of the Real Estate Settlement
Procedures Act of 1974;
(B) a glossary of terms relating to residential
mortgage loans and federally related mortgage loans,
provided in each commonly spoken language;
(C) guidance for creditors and servicers working
with persons who have a preferred language that is not
English; and
(D) examples of notices that may be used by
creditors and servicers to inform persons of available
language services, provided in accordance with section
6(n)(2) of the Real Estate Settlement Procedures Act of
1974 and section 129I of the Truth in Lending Act.
(g) Advisory Group.--
(1) In general.--The Director of the Bureau of Consumer
Financial Protection shall establish an advisory group
consisting of stakeholders, including industry groups, consumer
groups, civil rights groups, and groups that have experience
improving language access in housing finance transactions, to
provide advice to the Director about--
(A) issues that arise relating to mortgage
origination and servicing processes for persons with a
preferred language that is not English;
(B) the development of the standard language
preference form by the Director under section 129I(a)
of the Truth in Lending Act; and
(C) updates to the language resource website
established by the Director, the Secretary of Housing
and Urban Development, the Director of the Federal
Housing Finance Agency, the Secretary of Agriculture,
and the Secretary of Veterans Affairs under subsection
(f).
(2) Required consulting.--The Director of the Bureau of
Consumer Financial Protection shall consult with the advisory
group established pursuant to paragraph (1) with respect to any
issues that arise relating to mortgage origination and
servicing processes for persons with a preferred language that
is not English.
(h) Housing Counseling Agency Language Resources.--
(1) Enhanced search capabilities.--Not later than 1 year
after the date of the enactment of this section--
(A) the Secretary shall update the website
maintained by the Secretary that identifies housing
counselors approved by the Department of Housing and
Urban Development, to allow for searching for housing
counseling agencies based on provided language
services; and
(B) the Director shall update the website
maintained by the Director that identifies housing
counselors approved by the Secretary to allow for
searching for housing counseling agencies based on
provided language services.
(2) Authorization of appropriations.--There is authorized
to be appropriated to the Secretary of Housing and Urban
Development, such sums as are necessary to support language
training for housing counselors, housing counseling agencies,
and staff that are approved by the Secretary.
(i) Definitions.--In this section:
(1) Creditor.--The term ``creditor'' has the meaning given
the term in section 103 of the Truth in Lending Act and shall
include any assignee of a creditor.
(2) Director.--The term ``Director'' means the Director of
the Bureau of Consumer Financial Protection.
(3) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
(4) Servicer.--The term ``servicer'' has the meaning given
the term in section 6(i) of the Real Estate Settlement
Procedures Act of 1974.
(5) Residential mortgage loan.--The term ``residential
mortgage loan'' has the meaning given the term in section 103
of the Truth in Lending Act.
(6) Federally related mortgage loan.--The term ``federally
related mortgage loan'' has the meaning given the term in
section 3 of the Real Estate Settlement Procedures Act of 1974.
Subtitle B--Fair Lending for All
SEC. 321. OFFICE OF FAIR LENDING TESTING.
(a) Establishment.--There is established within the Bureau of
Consumer Financial Protection an Office of Fair Lending Testing
(hereinafter referred to as the ``Office'').
(b) Director.--The head of the Office shall be a Director, who
shall--
(1) be appointed to a 5-year term by, and report to, the
Director of the Bureau of Consumer Financial Protection;
(2) appoint and fix the compensation of such employees as
are necessary to carry out the duties of the Office under this
section; and
(3) provide an estimated annual budget to the Director of
the Bureau of Consumer Financial Protection.
(c) Civil Service Position.--The position of the Director shall be
a career position within the civil service.
(d) Testing.--
(1) In general.--The Office, in consultation with the
Attorney General and the Secretary of Housing and Urban
Development, shall conduct testing of compliance with the Equal
Credit Opportunity Act by creditors, through the use of
individuals who, without any bona fide intent to receive a
loan, pose as prospective borrowers for the purpose of
gathering information.
(2) Referral of violations.--If, in carrying out the
testing described under paragraph (1), the Office believes a
person has violated the Equal Credit Opportunity Act, the
Office shall refer such violation in writing to the Attorney
General for appropriate action.
(e) Report to Congress.--Section 707 of the Equal Credit
Opportunity Act (15 U.S.C. 1691f) is amended by adding at the end the
following: ``In addition, each report of the Bureau shall include an
analysis of the testing carried out pursuant to section 321 of the
Financial Services Racial Equity, Inclusion, and Economic Justice Act,
and each report of the Bureau and the Attorney General shall include a
summary of criminal enforcement actions taken under section 706A.''.
SEC. 322. PROHIBITION ON CREDIT DISCRIMINATION.
(a) In General.--Subsection (a) of section 701 of the Equal Credit
Opportunity Act (15 U.S.C. 1691) is amended to read as follows:
``(a) It shall be unlawful to discriminate against any person, with
respect to any aspect of a credit transaction--
``(1) on the basis of race, color, religion, national
origin, sex (including sexual orientation and gender identity),
marital status, age (provided the applicant has the capacity to
contract), or disability (as such term is defined in section 3
of the Americans with Disabilities Act of 1990);
``(2) on the basis of the person's zip code, or census
tract;
``(3) because all or part of the person's income derives
from any public assistance program; or
``(4) because the person has in good faith exercised any
right under the Consumer Credit Protection Act.''.
(b) Removal of Certain References to Creditors and Applicants and
Definition Added.--The Equal Credit Opportunity Act (15 U.S.C. 1691 et
seq.) is amended--
(1) in section 701(b)--
(A) by striking ``applicant'' each place such term
appears and inserting ``person''; and
(B) in paragraph (2), by striking ``applicant's''
each place such term appears and inserting
``person's'';
(2) in section 702--
(A) by redesignating subsection (g) as subsection
(h); and
(B) by inserting after subsection (f) the
following:
``(g) The term `aggrieved person' includes any person who--
``(1) claims to have been injured by a discriminatory
credit practice; or
``(2) believes that such person will be injured by a
discriminatory credit practice.'';
(3) in section 704A--
(A) in subsection (b)(1), by striking ``applicant''
each place such term appears and inserting ``aggrieved
person''; and
(B) in subsection (c), by striking ``applicant''
and inserting ``aggrieved person'';
(4) in section 705--
(A) by striking ``the applicant'' each place such
term appears and inserting ``persons''; and
(B) in subsection (a)--
(i) by striking ``a creditor to take'' and
inserting ``taking''; and
(ii) by striking ``applicant'' and
inserting ``person''; and
(5) in section 706--
(A) by striking ``creditor'' each place such term
appears and inserting ``person'';
(B) by striking ``creditor's'' each place such term
appears and inserting ``person's'';
(C) by striking ``creditors'' each place such term
appears and inserting ``persons''; and
(D) in subsection (f), by striking ``applicant''
and inserting ``aggrieved person''.
(c) ECOA Definitions.--Section 702 of the Equal Credit Opportunity
Act (15 U.S.C. 1691a), as amended by subsection (b), is further amended
by adding at the end the following:
``(h) The term `gender identity' means the gender-related identity,
appearance, mannerisms, or other gender-related characteristics of an
individual, regardless of the individual's designated sex at birth.
``(i) The term `sex' includes--
``(1) a sex stereotype;
``(2) pregnancy, childbirth, or a related medical
condition;
``(3) sexual orientation or gender identity; and
``(4) sex characteristics, including intersex traits.
``(j) The term `sexual orientation' means homosexuality,
heterosexuality, or bisexuality.
``(k) The term `race', `color', `religion', `national origin',
`sex' (including `sexual orientation' and `gender identity'), `marital
status', or `age', used with respect to an individual, includes--
``(1) the race, color, religion, national origin, sex
(including sexual orientation and gender identity), marital
status, or age, respectively, of another person with whom the
individual is associated or has been associated; and
``(2) a perception or belief, even if inaccurate,
concerning the race, color, religion, national origin, sex
(including sexual orientation and gender identity), marital
status, or age, respectively, of the individual.''.
(d) Rules of Construction.--Section 701 of the Equal Credit
Opportunity Act (15 U.S.C. 1691) is amended by adding at the end the
following:
``(f) Rules of Construction.--
``(1) Claims and remedies not precluded.--Nothing in this
title shall be construed to limit the claims or remedies
available to any individual for an unlawful practice on the
basis of race, color, religion, sex (including sexual
orientation and gender identity), or national origin, including
claims brought pursuant to section 1979 or 1980 of the Revised
Statutes (42 U.S.C. 1983, 1985) or any other law, including a
Federal law, regulation, or policy.
``(2) No negative inference.--Nothing in this title shall
be construed to support any inference that any Federal law
prohibiting a practice on the basis of sex does not prohibit
discrimination on the basis of pregnancy, childbirth, or a
related medical condition, sexual orientation, gender identity,
or a sex stereotype.''.
SEC. 323. CRIMINAL PENALTIES FOR VIOLATIONS OF THE EQUAL CREDIT
OPPORTUNITY ACT.
(a) In General.--The Equal Credit Opportunity Act (15 U.S.C. 1691
et seq.) is amended by inserting after section 706 the following:
``Sec. 706A. Criminal penalties
``(a) Individual Violations.--Any person who knowingly and
willfully violates this title shall be fined not more than $50,000, or
imprisoned not more than 1 year, or both.
``(b) Pattern or Practice.--
``(1) In general.--Any person who engages in a pattern or
practice of knowingly and willfully violating this title shall
be fined not more than $100,000 for each violation of this
title, or imprisoned not more than twenty years, or both.
``(2) Personal liability of executive officers and
directors of the board.--Any executive officer or director of
the board of an entity who knowingly and willfully causes the
entity to engage in a pattern or practice of knowingly and
willfully violating this title (or who directs another agent,
senior officer, or director of the entity to commit such a
violation or engage in such acts that result in the director or
officer being personally unjustly enriched) shall be--
``(A) fined in an amount not to exceed 100 percent
of the compensation (including stock options awarded as
compensation) received by such officer or director from
the entity--
``(i) during the time period in which the
violations occurred; or
``(ii) in the one to three year time period
preceding the date on which the violations were
discovered; and
``(B) imprisoned for not more than 5 years.''.
(b) Clerical Amendment.--The table of contents for the Equal Credit
Opportunity Act (15 U.S.C. 1691 et seq.) is amended by inserting after
the item relating to section 706 the following:
``706A. Criminal penalties.''.
SEC. 324. REVIEW OF LOAN APPLICATIONS.
(a) In General.--Subtitle C of the Consumer Financial Protection
Act of 2010 (12 U.S.C. 5531 et seq.) is amended by adding at the end
the following:
``SEC. 1038. REVIEW OF LOAN APPLICATIONS.
``(a) In General.--The Bureau shall carry out reviews of loan
applications and the process of taking loan applications being used by
covered persons to ensure such applications and processes do not
violate the Equal Credit Opportunity Act or any other Federal consumer
financial law.
``(b) Prohibition and Enforcement.--If the Bureau determines under
subsection (a) that any loan application or process of taking a loan
application violates the Equal Credit Opportunity Act or any other
Federal consumer financial law, the Bureau shall--
``(1) prohibit the covered person from using such
application or process; and
``(2) take such enforcement or other actions with respect
to the covered person as the Bureau determines appropriate.''.
(b) Clerical Amendment.--The table of contents in section 1 of the
Dodd-Frank Wall Street Reform and Consumer Protection Act is amended by
inserting after the item relating to section 1037 the following:
``Sec. 1038. Review of loan applications.''.
SEC. 325. MORTGAGE DATA COLLECTION.
(a) In General.--Section 304(b)(4) of the Home Mortgage Disclosure
Act of 1975 (12 U.S.C. 2803(b)(4)) is amended by striking ``census
tract, income level, racial characteristics, age, and gender'' and
inserting ``the applicant or borrower's zip code, census tract, income
level, race, color, religion, national origin, sex, marital status,
sexual orientation, gender identity, disability status, veteran status,
and age''.
(b) Protection of Privacy Interests.--Section 304(h)(3)(A) of the
Home Mortgage Disclosure Act of 1975 (12 U.S.C. 2803(h)(3)(A)) is
amended--
(1) in clause (i), by striking ``and'' at the end;
(2) by redesignating clause (ii) as clause (iii); and
(3) by inserting after clause (i) the following:
``(ii) zip code, census tract, and any
other category of data described in subsection
(b)(4), as the Bureau determines to be
necessary to satisfy the purpose described in
paragraph (1)(E), and in a manner consistent
with that purpose; and''.
Subtitle C--Promoting and Advancing Communities of Color Through
Inclusive Lending
SEC. 331. STRENGTHENING DIVERSE AND MISSION-DRIVEN COMMUNITY FINANCIAL
INSTITUTIONS.
(a) Minority Lending Institution Set-aside in Providing
Assistance.--
(1) In general.--Section 108 of the Riegle Community
Development and Regulatory Improvement Act of 1994 (12 U.S.C.
4707) is amended by adding at the end the following:
``(i) Supporting Minority Institutions.--Notwithstanding any other
provision of law, in providing any assistance to community development
financial institutions, the Fund shall reserve 40 percent of such
assistance for minority lending institutions.''.
(2) Definitions.--Section 103 of the Riegle Community
Development and Regulatory Improvement Act of 1994 (12 U.S.C.
4702) is amended by adding at the end the following:
``(22) Minority lending institution.--The term `minority
lending institution' has the meaning given that term under
section 523(c) of division N of the Consolidated Appropriations
Act, 2021.''.
(b) Office of Minority Lending Institutions.--Section 104 of the
Riegle Community Development and Regulatory Improvement Act of 1994 (12
U.S.C. 4703) is amended by adding at the end the following:
``(l) CDFI Office of Minority Lending Institutions.--There is
established within the Fund an Office of Minority Lending Institutions,
which shall oversee assistance provided by the Fund to minority lending
institutions.''.
(c) Reporting on Minority Lending Institutions.--Section 117 of the
Riegle Community Development and Regulatory Improvement Act of 1994 (12
U.S.C. 4716) is amended by adding at the end the following:
``(g) Reporting on Minority Lending Institutions.--Each report
required under subsection (a) shall include a description of the extent
to which assistance from the Fund are provided to minority lending
institutions.''.
(d) Submission of Demographic Data Relating to Diversity by
Community Development Financial Institutions.--Section 104 of the
Riegle Community Development and Regulatory Improvement Act of 1994 (12
U.S.C. 4703), as amended by subsection (b), is further amended by
adding at the end the following:
``(m) Submission of Demographic Data Relating to Diversity.--
``(1) Definitions.--In this subsection--
``(A) the term `executive officer' has the meaning
given the term in section 230.501(f) of title 17, Code
of Federal Regulations, as in effect on the date of
enactment of this subsection;
``(B) the term `gender identity' means the gender-
related identity, appearance, mannerisms, or other
gender-related characteristics of an individual,
regardless of the individual's designated sex at birth;
``(C) the term `sexual orientation' means
homosexuality, heterosexuality, or bisexuality; and
``(D) the term `veteran' has the meaning given the
term in section 101 of title 38, United States Code.
``(2) Submission of disclosure.--Each Fund applicant and
recipient shall provide data regarding such factors as may be
determined by the Fund, which may include the following:
``(A) Demographic data, based on voluntary self-
identification, on the racial, ethnic, gender identity,
and sexual orientation composition of--
``(i) the board of directors of the
institution; and
``(ii) the executive officers of the
institution.
``(B) The status of any member of the board of
directors of the institution, any nominee for the board
of directors of the institution, or any executive
officer of the institution, based on voluntary self-
identification, as a veteran.
``(C) Whether the board of directors of the
institution, or any committee of that board of
directors, has, as of the date on which the institution
makes a disclosure under this paragraph, adopted any
policy, plan, or strategy to promote racial, ethnic,
and gender diversity among--
``(i) the board of directors of the
institution;
``(ii) nominees for the board of directors
of the institution; or
``(iii) the executive officers of the
institution.
``(3) Report to congress.--Not later than 24 months after
the date of enactment of this subsection, and every other year
thereafter, the Fund shall submit to the Committee on Banking,
Housing, and Urban Affairs of the Senate and the Committee on
Financial Services of the House of Representatives, and make
publicly available on the website of the Fund, a report--
``(A) on the demographic data and trends of the
diversity information made available pursuant to
paragraph (2), including breakdowns by each State
(including the District of Columbia and each territory
of the United States) and Tribal government entity; and
``(B) containing any administrative or legislative
recommendations of the Fund to enhance the
implementation of this title or to promote diversity
and inclusion within community development financial
institutions.''.
(e) Office of Diverse and Mission-Driven Community Financial
Institutions.--
(1) Establishment.--There is established within the
Department of the Treasury the Office of Diverse and Mission-
Driven Community Financial Institutions.
(2) Leadership.--The Office of Diverse and Mission-Driven
Community Financial Institutions shall be led by a Deputy
Assistant Secretary for Diverse and Mission-Driven Community
Financial Institutions, who shall be appointed by the Secretary
of the Treasury, in consultation with the Department of the
Treasury's Director of Office of Minority and Women Inclusion.
(3) Functions.--The Office of Diverse and Mission-Driven
Community Financial Institutions, pursuant to the direction of
the Secretary, shall seek to provide support for diverse and
mission-driven community financial institutions and have the
authority--
(A) to monitor and issue reports regarding--
(i) community development financial
institutions, minority depository institutions,
and minority lending institutions; and
(ii) the role such institutions play in the
financial system of the United States,
including the impact they have on providing
financial access to low- and moderate-income
communities, communities of color, and other
underserved communities;
(B) to serve as a resource and Federal liaison for
current and prospective community development financial
institutions, minority depository institutions, and
minority lending institutions seeking to engage with
the Department of the Treasury, the Community
Development Financial Institutions Fund (``CDFI
Fund''), other Federal government agencies, including
by providing contact information for other offices of
the Department of the Treasury or other Federal
Government agencies, resources, technical assistance,
or other support for entities wishing--
(i) to become certified as a community
development financial institution, and maintain
the certification;
(ii) to obtain a banking charter, deposit
insurance, or otherwise carry on banking
activities in a safe, sound, and responsible
manner;
(iii) to obtain financial support through
private sector deposits, investments,
partnerships, and other means;
(iv) to expand their operations through
internal growth and acquisitions;
(v) to develop and upgrade their
technology, cybersecurity resilience,
compliance systems, data reporting systems, and
their capacity to support their communities,
including through partnerships with third-party
companies;
(vi) to obtain grants, awards, investments
and other financial support made available
through the CDFI Fund, the Board of Governors
of the Federal Reserve System, the Central
Liquidity Facility, the Federal Home Loan
Banks, and other Federal programs;
(vii) to participate as a financial
intermediary with respect to various Federal
and State programs and agencies, including the
State Small Business Credit Initiative and
programs of the Small Business Administration;
and
(viii) to participate in Financial Agent
Mentor-Protege Program of the Department of the
Treasury and other Federal programs designed to
support private sector partnerships;
(C) to provide resources to the public wishing to
learn more about minority depository institutions,
community development financial institutions, and
minority lending institutions, including helping the
Secretary implement the requirements under section 334,
publishing reports issued by the Office on the website
of the Department of the Treasury and providing
hyperlinks to other relevant reports and materials from
other Federal agencies;
(D) to provide policy recommendations to other
relevant Federal agencies and Congress on ways to
further strengthen Federal support for community
development financial institutions, minority depository
institutions, and minority lending institutions;
(E) to assist the Secretary in carrying out the
Secretary's responsibilities under section 308 of the
Financial Institutions Reform, Recovery, and
Enforcement Act of 1989 (12 U.S.C. 1463 note) to
preserve and promote minority depository institutions
in consultation with the Chairman of the Board of
Governors of the Federal Reserve System, the
Comptroller of the Currency, the Chairman of the
National Credit Union Administration, and the
Chairperson of the Board of Directors of the Federal
Deposit Insurance Corporation;
(F) to carry out other duties of the Secretary of
the Treasury required by this Act and the amendments
made by this Act, and to perform such other duties and
authorities as may be assigned by the Secretary.
(f) Strengthening Federal Efforts and Interagency Coordination to
Promote Diverse and Mission-driven Community Financial Institutions.--
(1) Senior officials designated.--The Chairman of the Board
of Governors of the Federal Reserve System, the Comptroller of
the Currency, the Chairman of the National Credit Union
Administration, the Chairperson of the Board of Directors of
the Federal Deposit Insurance Corporation, and the Director of
the Bureau of Consumer Financial Protection shall each, in
consultation with their respective Director of Office of
Minority and Women Inclusion, designate a senior official to be
their respective agency's officer responsible for promoting
minority depository institutions, community development
financial institutions, and minority lending institutions,
including to fulfill obligations under section 308 of the
Financial Institutions Reform, Recovery, and Enforcement Act of
1989 (12 U.S.C. 1463 note) to preserve and promote minority
depository institutions.
(2) Interagency working group.--The Department of the
Treasury shall regularly convene meetings, no less than once a
quarter, of an interagency working group to be known as the
``Interagency Working Group to Promote Diverse and Mission-
Driven Community Financial Institutions'', which shall consist
of the senior officials designated by their respective agencies
under paragraph (1), along with the Deputy Assistant Secretary
for Diverse and Mission-Driven Community Financial
Institutions, the Director of the Community Development
Financial Institutions Fund, and such other government
officials as the Secretary of the Treasury may choose to
invite, to examine and discuss the state of minority depository
institutions, community development financial institutions, and
minority lending institutions, and actions the relevant
agencies can take to preserve, promote, and strengthen these
institutions.
(3) Promoting fair housing and collective ownership
opportunities.--
(A) Initial report.--Not later than 18 months after
the date of the enactment of this subsection, the
Secretary of Treasury, jointly with the Secretary of
Housing and Urban Development, shall issue a report to
the covered agencies and the Congress examining
different ways financial institutions, including
community development financial institutions, can
affirmatively further fair housing and be encouraged
and incentivized to carry out activities that expand
long-term wealth-building opportunities within low-
income and minority communities that support collective
ownership opportunities, including through investments
in worker cooperatives, consumer cooperatives,
community land trusts, not-for-profit-led shared equity
homeownership, and limited-equity cooperatives, and to
provide recommendations to the covered agencies and the
Congress in the furtherance of these objectives.
(B) Progress updates.--Beginning not later than
three years after the date of the enactment of this
subsection, and every five years thereafter, the
Secretary of the Treasury and the Secretary of Housing
and Urban Development shall, after receiving the
necessary updates from the covered agencies, issue a
report examining the progress made on implementing
relevant recommendations, and providing any additional
recommendations to the covered agencies and the
Congress in furtherance of the objectives under
subparagraph (A).
(C) Covered agencies.--For purposes of this
subsection, the term ``covered agencies'' means the
Community Development Financial Institutions Fund, the
Department of Housing and Urban Development. the Board
of Governors of the Federal Reserve System, the Federal
Deposit Insurance Corporation, the Office of the
Comptroller of the Currency, the National Credit Union
Administration, and the Federal Housing Finance Agency.
(4) Annual report to congress.--Not later than 1 year after
the date of the enactment of this subsection, and annually
thereafter, the Secretary of the Treasury, the Chairman of the
Board of Governors of the Federal Reserve System, the
Comptroller of the Currency, the Chairman of the National
Credit Union Administration, the Chairperson of the Board of
Directors of the Federal Deposit Insurance Corporation, and the
Director of the Bureau of Consumer Financial Protection shall
submit a joint report to the Committee on Financial Services of
the House of Representatives and the Committee on Banking,
Housing, and Urban Affairs of the Senate regarding the work
that has been done the prior year to preserve, promote, and
strengthen community development financial institutions,
minority depository institutions, and minority lending
institutions, along with any policy recommendations on actions
various government agencies and Congress should take to
preserve, promote, and strengthen community development
financial institutions, minority depository institutions, and
minority lending institutions.
SEC. 332. CAPITAL INVESTMENTS, GRANTS, AND TECHNOLOGY SUPPORT FOR MDIS
AND CDFIS.
(a) Authorization of Appropriation.--There is authorized to be
appropriated to the Emergency Capital Investment Fund $4,000,000,000.
Such funds may be used for administrative expenses of the Department of
the Treasury.
(b) Conforming Amendments to Allow for Additional Purchases of
Capital.--Section 104A of the Riegle Community Development and
Regulatory Improvement Act of 1994 (12 U.S.C. 4703a) is amended--
(1) in subsection (c), by striking paragraph (2); and
(2) in subsection (e), by striking paragraph (2).
(c) Use of Funds for CDFI Financial and Technical Assistance.--
Section 104A of the Riegle Community Development and Regulatory
Improvement Act of 1994 (12 U.S.C. 4703a) is amended by adding at the
end the following:
``(p) Use of Funds for CDFI Financial and Technical Assistance.--
The Secretary shall transfer no less than $1,000,000,000 in the
Emergency Capital Investment Fund to the Fund for the purpose of
providing financial and technical assistance grants to community
development financial institutions certified by the Secretary. The Fund
shall provide such grants using a formula that takes into account
criteria such as certification status, financial and compliance
performance, portfolio and balance sheet strength, diversity of CDFI
business model types, and program capacity.''.
(d) Technology Grants for MDIs and CDFIs.--
(1) Study and report on certain technology challenges.--
(A) Study.--The Secretary of the Treasury shall
carry out a study on the technology challenges
impacting minority depository institutions and
community development financial institutions with
respect to--
(i) internal technology capabilities and
capacity of the institutions to process loan
applications and otherwise serve current and
potential customers through the internet,
mobile phone applications, and other tools;
(ii) technology capabilities and capacity
of the institutions, provided in partnership
with third party companies, to process loan
applications and otherwise serve current and
potential customers through the internet,
mobile phone applications, and other tools;
(iii) cybersecurity; and
(iv) challenges and solutions related to
algorithmic bias in the deployment of
technology.
(B) Report.--Not later than 18 months after the
date of the enactment of this subsection, the Secretary
shall submit a report to the Committee on Financial
Services of the House of Representatives and the
Committee on Banking, Housing, and Urban Affairs of the
Senate that includes the results of the study required
under subparagraph (A).
(2) Technology grant program.--
(A) Program authorized.--The Secretary shall carry
out a technology grant program to make grants to
minority depository institutions and community
development financial institutions to address
technology challenges impacting such institutions.
(B) Application.--To be eligible to be awarded a
grant under this paragraph, a minority depository
institution or community development financial
institution shall submit an application to the
Secretary at such time, in such manner, and containing
such information as the Secretary may require.
(C) Use of funds.--A minority depository
institution or community development financial
institution that is awarded a grant under this
paragraph may use the grant funds to--
(i) enhance or adopt technologies that--
(I) shorten loan approval
processes;
(II) improve customer experience;
(III) provide additional services
to customers;
(IV) facilitate compliance with
applicable laws, regulations, and
program requirements, including testing
to ensure that the use of technology
does not result in discrimination, and
helping to satisfy data reporting
requirements;
(V) help ensure privacy of customer
records and cybersecurity resilience;
and
(VI) reduce the unbanked and
underbanked population; or
(ii) carry out such other activities as the
Secretary determines appropriate.
(3) Funding.--The Secretary may use amounts in the
Emergency Capital Investment Fund to implement and make grants
under paragraph (2), but not to exceed $250,000,000 in the
aggregate.
(4) Definitions.--In this subsection, the terms ``community
development financial institution'' and ``minority depository
institution'' have the meaning given those terms, respectively,
under section 103 of the Riegle Community Development and
Regulatory Improvement Act of 1994 (12 U.S.C. 4702).
(e) Pilot Program for Establishing De Novo CDFIs and MDIs.--
(1) In general.--The Secretary of the Treasury, in
consultation with the Fund and the appropriate Federal banking
agencies, shall establish a pilot program to provide
competitive grants to a person for the purpose of providing
capital for such person to establish a minority depository
institution or a community development financial institution.
(2) Application.--A person desiring a grant under this
subsection shall submit to the Secretary an application in such
form and containing such information as the Secretary
determines appropriate.
(3) Disbursement.--Before disbursing grant amounts to a
person selected to receive a grant under this subsection, the
Secretary shall ensure that such person has received approval
from the appropriate Federal banking agency (or such other
Federal or State agency from whom approval is required) to
establish a minority depository institution or a community
development financial institution, as applicable.
(4) Funding.--The Secretary may use amounts in the
Emergency Capital Investment Fund to implement and make grants
under paragraph (2), but not to exceed $100,000,000 in the
aggregate.
(5) Definitions.--In this subsection, the terms
``appropriate Federal banking agency'', ``community development
financial institution'', ``Fund'', and ``minority depository
institution'' have the meaning given those terms, respectively,
under section 103 of the Riegle Community Development and
Regulatory Improvement Act of 1994 (12 U.S.C. 4702).
(f) Guidance for Subchapter S and Mutual Banks.--Not later than 30
days after the date of enactment of this Act, the Board of Governors of
the Federal Reserve System and the Secretary shall issue guidance
regarding how Emergency Capital Investment Program investments (whether
made before or after the date of enactment of this Act) are considered
for purposes of various prudential requirements, including debt to
equity, leverage ratio, and double leverage ratio requirements with
respect to subchapter S and mutual bank recipients of such investments.
(g) Collection of Data.--Section 111 of the Riegle Community
Development and Regulatory Improvement Act of 1994 (12 U.S.C. 4710) is
amended--
(1) by striking ``The Fund'' and inserting the following:
``(a) In General.--The Fund''; and
(2) by adding at the end the following:
``(b) Collection of Certain Data by CDFIs.--Notwithstanding the
Equal Credit Opportunity Act (15 U.S.C. 1691 et seq.)--
``(1) a community development financial institution may
collect data described in section 701(a)(1) of that Act (15
U.S.C. 1691(a)(1)) from borrowers and applicants for credit for
the sole purpose and exclusive use to ensure that targeted
populations and low-income residents of investment areas are
adequately served and to report the level of service provided
to such populations and areas to the Fund; and
``(2) a community development financial institution that
collects the data described in paragraph (1) shall not be
subject to adverse action related to that collection by the
Bureau of Consumer Financial Protection or any other Federal
agency.''.
SEC. 333. SUPPORTING YOUNG ENTREPRENEURS PROGRAM.
Section 108 of the Riegle Community Development and Regulatory
Improvement Act of 1994 (12 U.S.C. 4707), as amended by section
331(a)(1), is further amended by adding at the end the following:
``(j) Supporting Young Entrepreneurs Program.--
``(1) In general.--The Fund shall establish a Supporting
Young Entrepreneurs Program under which the Fund may provide
financial awards to the community development financial
institutions that the Fund determines have the best programs to
help young entrepreneurs get the start up capital needed to
start a small business, with a focus on supporting young women
entrepreneurs, entrepreneurs who are Black, Hispanic, Asian or
Pacific Islander, and Native American or Native Alaskan and
other historically underrepresented groups or first time
business owners.
``(2) No matching requirement.--The matching requirement
under subsection (e) shall not apply to awards made under this
subsection.
``(3) Funding.--In carrying out this subsection, the Fund
may use--
``(A) amounts in the Emergency Capital Investment
Fund, but not to exceed $100,000,000 in the aggregate;
and
``(B) such other funds as may be appropriated by
Congress to the Fund to carry out the Supporting Young
Entrepreneurs Program.''.
SEC. 334. MAP OF MINORITY DEPOSITORY INSTITUTIONS AND COMMUNITY
DEVELOPMENT FINANCIAL INSTITUTIONS.
(a) In General.--The Secretary of the Treasury, in consultation
with the CDFI Fund and the Federal banking agencies, shall establish an
interactive, searchable map showing the geographic locations of the
headquarters and branch locations of minority depository institutions,
which shall be provided by the Federal banking agencies, and community
development financial institutions that have been certified by the
Secretary, including breakdowns by each State (including the District
of Columbia and each territory of the United States), Tribal government
entity, and congressional district. Such map shall also provide a link
to the website of each such minority depository institution and
community development financial institution.
(b) Definitions.--In this section:
(1) CDFI fund.--The term ``CDFI Fund'' means the Community
Development Financial Institutions Fund established under
section 104(a) of the Riegle Community Development and
Regulatory Improvement Act of 1994.
(2) Community development financial institution.--The term
``community development financial institution'' has the meaning
given in section 103 of the Riegle Community Development and
Regulatory Improvement Act of 1994.
(3) Federal banking agency.--The term ``Federal banking
agency''--
(A) has the meaning given in section 3 of the
Federal Deposit Insurance Act; and
(B) means the National Credit Union Administration.
(4) Minority depository institution.--The term ``minority
depository institution'' has the meaning given in section
308(b) of the Financial Institutions Reform, Recovery, and
Enforcement Act of 1989.
SEC. 335. REPORT ON CERTIFIED COMMUNITY DEVELOPMENT FINANCIAL
INSTITUTIONS.
Section 117(a) of the Riegle Community Development and Regulatory
Improvement Act of 1994 (12 U.S.C. 4716(a)) is amended--
(1) by striking ``The Fund'' and inserting the following:
``(1) In general.--The Fund'';
(2) by striking ``and the Congress'' and inserting ``, the
Congress, and the public''; and
(3) by adding at the end the following:
``(2) Report on certified community development financial
institutions.--The annual report required under paragraph (1)
shall include a report on community development financial
institutions (`CDFIs') that have been certified by the
Secretary of the Treasury, including a summary with aggregate
data and analysis, to the fullest extent practicable,
regarding--
``(A) a list of the types of organizations that are
certified as CDFIs, and the number of each type of
organization;
``(B) the geographic location and capacity of
different types of certified CDFIs, including overall
impact breakdowns by each State (including the District
of Columbia and each territory of the United States)
and Tribal government entity;
``(C) the lines of business for different types of
certified CDFIs;
``(D) human resources and staffing information for
different types of certified CDFIs, including--
``(E) the types of development services provided by
different types of certified CDFIs;
``(F) the target markets of different types of
certified CDFIs and the amount of products and services
offered by CDFIs to those target markets, including--
``(i) the number and amount of loans and
loan guarantees made in those target markets;
``(ii) the number and amount of other
investments made in those target markets; and
``(iii) the number and amount of
development services offered in those target
markets; and
``(G) such other information as the Director of the
Fund may determine necessary to promote transparency of
the impact of different types of CDFIs, while carrying
out this report in a manner that seeks to minimize data
reporting requirements from certified CDFIs when
feasible, including utilizing information gathered from
other regulators under section 104(l).''.
SEC. 336. CONSULTATION AND MINIMIZATION OF DATA REQUESTS.
Section 104 of the Riegle Community Development and Regulatory
Improvement Act of 1994 (12 U.S.C. 4703) is amended by adding at the
end the following:
``(l) Consultation and Minimization of Data Requests.--
``(1) In general.--In carrying out its duties, the Fund
shall--
``(A) periodically, and no less frequent than once
a year, consult with the applicable Federal regulator
of certified CDFIs and applicants to be a certified
CDFI (`applicants)';
``(B) seek to gather any information necessary
related to Fund certification and award decisions on
certified CDFIs and applicants from the applicable
Federal regulator, and such regulators shall use
reasonable efforts to provide such information to the
Fund, to minimize duplicative data collection requests
made by the Fund of certified CDFIs and applicants and
to expedite certification, award, or other relevant
processes administered by the Fund.
``(2) Applicable federal regulator defined.--In this
subsection, the term `applicable Federal regulator' means--
``(A) with respect to a certified CDFI or an
applicant that is regulated by both an appropriate
Federal banking agency and the Bureau of Consumer
Financial Protection, the Bureau of Consumer Financial
Protection;
``(B) with respect to a certified CDFI or an
applicant that is not regulated by the Bureau of
Consumer Financial Protection, the appropriate Federal
banking agency for such applicant; or
``(C) the Bureau of Consumer Financial Protection,
with respect to a certified CDFI or an applicant--
``(i) that is not regulated by an
appropriate Federal banking agency; and
``(ii) that offers or provides consumer
financial products or services (as defined in
section 1002 of the Consumer Financial
Protection Act of 2010 (12 U.S.C. 5481).''.
SEC. 337. ACCESS TO THE DISCOUNT WINDOW OF THE FEDERAL RESERVE SYSTEM
FOR MDIS AND CDFIS.
Within 1 year after the date of enactment of this Act, the Board of
Governors of the Federal Reserve System shall establish a process under
which minority depository institutions and community development
financial institutions may have access to the discount window, at the
seasonal credit interest rate most recently published on the Federal
Reserve Statistical Release on selected interest rates (daily or
weekly).
SEC. 338. STUDY ON SECURITIZATION BY CDFIS.
(a) In General.--The Secretary of the Treasury, in consultation
with the Community Development Financial Institutions Fund and such
other Federal agencies as the Secretary determines appropriate, shall
carry out a study on--
(1) the use of securitization by CDFIs;
(2) any barriers to the use of securitization as a source
of liquidity by CDFIs; and
(3) any authorities available to the Government to support
the use of securitization by CDFIs to the extent it helps serve
underserved communities.
(b) Report.--Not later than the end of the 1-year period beginning
on the date of enactment of this Act, the Secretary shall issue a
report to the Committee on Financial Services of the House of
Representatives and the Committee on Banking, Housing, and Urban
Affairs of the Senate containing--
(1) all findings and determinations made in carrying out
the study required under subsection (a); and
(2) any legislative or administrative recommendations of
the Secretary that would promote the responsible use of
securitization to help CDFIs in reaching more underserved
communities.
(c) CDFI Defined.--The term ``CDFI'' has the meaning given the term
``community development financial institution'' under section 103 of
the Riegle Community Development and Regulatory Improvement Act of
1994.
TITLE IV--DIVERSITY IN FINANCIAL INSTITUTIONS AND CORPORATIONS
Subtitle A--Promoting New and Diverse Depository Institutions
SEC. 411. STUDY AND STRATEGIC PLAN.
(a) In General.--The Federal banking regulators shall jointly--
(1) conduct a study about the challenges faced by proposed
depository institutions, including proposed minority depository
institutions, seeking de novo depository institution charters;
and
(2) submit to the Committee on Financial Services of the
House of Representatives and the Committee on Banking, Housing,
and Urban Affairs of the Senate and publish publically, not
later than 18 months after the date of the enactment of this
section--
(A) an analysis based on the study conducted
pursuant to paragraph (1);
(B) any findings from the study conducted pursuant
to paragraph (1); and
(C) any legislative recommendations that the
Federal banking regulators developed based on the study
conducted pursuant to paragraph (1).
(b) Strategic Plan.--
(1) In general.--Not later than 18 months after the date of
the enactment of this section, the Federal banking regulators
shall jointly submit to the Committee on Financial Services of
the House of Representatives and the Committee on Banking,
Housing, and Urban Affairs of the Senate and publish publically
a strategic plan based on the study conducted pursuant to
subsection (a) and designed to help proposed depository
institutions (including proposed minority depository
institutions) successfully apply for de novo depository
institution charters in a manner that promotes increased
availability of banking and financial services, safety and
soundness, consumer protection, community reinvestment,
financial stability, and a level playing field.
(2) Contents of strategic plan.--The strategic plan
described in paragraph (1) shall--
(A) promote the chartering of de novo depository
institutions, including--
(i) proposed minority depository
institutions; and
(ii) proposed depository institutions that
could be certified as community development
financial institutions; and
(B) describe actions the Federal banking regulators
may take that would increase the number of depository
institutions located in geographic areas where
consumers lack access to a branch of a depository
institution.
(c) Public Involvement.--When conducting the study and developing
the strategic plan required by this section, the Federal banking
regulators shall invite comments and other feedback from the public to
inform the study and strategic plan.
(d) Definitions.--In this section:
(1) Depository institution.--The term ``depository
institution'' has the meaning given in section 3 of the Federal
Deposit Insurance Act, and includes a ``Federal credit union''
and a ``State credit union'' as such terms are defined,
respectively, under section 101 of the Federal Credit Union
Act.
(2) Community development financial institution.--The term
``community development financial institution'' has the meaning
given in section 103 of the Riegle Community Development and
Regulatory Improvement Act of 1994.
(3) Federal banking regulators.--The term ``Federal banking
regulators'' means the Board of Governors of the Federal
Reserve System, the Comptroller of the Currency, the Federal
Deposit Insurance Corporation, the National Credit Union
Administration, and the Director of the Bureau of Consumer
Financial Protection.
(4) Minority depository institution.--The term ``minority
depository institution'' has the meaning given in section
308(b) of the Financial Institutions Reform, Recovery, and
Enforcement Act of 1989.
Subtitle B--Promoting Diversity and Inclusion in Banking
SEC. 421. DIVERSITY AND INCLUSION RATINGS.
(a) In General.--The Dodd-Frank Wall Street Reform and Consumer
Protection Act (12 U.S.C. 5301 et seq.) is amended by inserting after
section 342 the following:
``SEC. 342A. DIVERSITY AND INCLUSION RATINGS.
``(a) In General.--The Board of Governors, the Comptroller of the
Currency, the Corporation, and the National Credit Union Administration
Board, in assigning a rating to a depository institution under the
Uniform Financial Institutions Rating System (or an equivalent rating
by any such agency under a comparable rating system) shall include a
diversity and inclusion component that examines--
``(1) whether the depository institution has effective
policies in place to encourage diversity and inclusion in the
hiring practices of the institution;
``(2) whether the depository institution provides training
to the employees of the institution, that is appropriate to the
size and resources of the institution, on diversity and
inclusion;
``(3) whether the depository institution has policies in
place that ensure that employees are able to report workplace
discrimination without fear of wrongful retaliation, threats,
or coercion; and
``(4)(A) with respect to a depository institution with
total consolidated assets of $1,000,000,000 or less, whether
such depository institution has designated an individual to
serve as a Diversity and Inclusion Officer who reports to the
Chief Executive Officer of the institution on all diversity and
inclusion matters; or
``(B) with respect to a depository institution with total
consolidated assets of more than $1,000,000,000, whether such
depository institution--
``(i) has designated an individual to serve as a
Diversity and Inclusion Officer; and
``(ii) has established a committee for diversity
and inclusion that holds meetings quarterly and that
includes in its membership the Diversity and Inclusion
Officer designated under clause (i) and the Chief
Executive Officer of the institution.
``(b) Application to Minority Depository Institutions.--In carrying
out subsection (a) with respect to minority depository institutions,
the Board of Governors, the Comptroller of the Currency, the
Corporation, and the National Credit Union Administration Board shall--
``(1) assign such institutions the most favorable rating
with respect to the diversity and inclusion component described
under subsection (a); and
``(2) exempt such institutions from any examination
procedures related to the diversity and inclusion component
described under subsection (a).
``(c) Definitions.--In this section:
``(1) Depository institution.--The term `depository
institution' means a depository institution or a credit union.
``(2) Minority depository institution.--The term `minority
depository institution' means an entity that is--
``(A) a minority depository institution, as defined
in section 308 of the Financial Institutions Reform,
Recovery, and Enforcement Act of 1989 (12 U.S.C. 1463
note);
``(B) considered to be a minority depository
institution by--
``(i) the appropriate Federal banking
agency; or
``(ii) the National Credit Union
Administration, in the case of an insured
credit union.
``(C) the term `sexual orientation' means
homosexuality, heterosexuality, or bisexuality; or
``(D) the term `gender identity' means the gender-
related identity, appearance, mannerisms, or other
gender-related characteristics of an individual,
regardless of the individual's designated sex at
birth;''.
(b) Clerical Amendment.--The table of contents for the Dodd-Frank
Wall Street Reform and Consumer Protection Act is amended by inserting
after the item relating to section 342 the following:
``Sec. 342A. Diversity and inclusion ratings.''.
Subtitle C--Improving Corporate Governance Through Diversity
SEC. 431. SUBMISSION OF DATA RELATING TO DIVERSITY BY ISSUERS.
Section 13 of the Securities Exchange Act of 1934 (15 U.S.C. 78m)
is amended by adding at the end the following:
``(s) Submission of Data Relating to Diversity.--
``(1) Definitions.--In this subsection--
``(A) the term `executive officer' has the meaning
given the term in section 230.501(f) of title 17, Code
of Federal Regulations, as in effect on the date of
enactment of this subsection; and
``(B) the term `veteran' has the meaning given the
term in section 101 of title 38, United States Code.
``(2) Submission of disclosure.--Each issuer required to
file an annual report under subsection (a) shall disclose in
any proxy statement and any information statement relating to
the election of directors filed with the Commission the
following:
``(A) Data, based on voluntary self-identification,
on the racial, ethnic, gender identity, and sexual
orientation composition of--
``(i) the board of directors of the issuer;
``(ii) nominees for the board of directors
of the issuer; and
``(iii) the executive officers of the
issuer.
``(B) The status of any member of the board of
directors of the issuer, any nominee for the board of
directors of the issuer, or any executive officer of
the issuer, based on voluntary self-identification, as
a veteran.
``(C) Whether the board of directors of the issuer,
or any committee of that board of directors, has, as of
the date on which the issuer makes a disclosure under
this paragraph, adopted any policy, plan, or strategy
to promote racial, ethnic, and gender diversity among--
``(i) the board of directors of the issuer;
``(ii) nominees for the board of directors
of the issuer; or
``(iii) the executive officers of the
issuer.
``(D) The disability status, based on voluntary
self-identification, of any member of the board of
directors of the issuer, any nominee for the board of
directors of the issuer, or any executive officer of
the issuer.
``(3) Alternative submission.--In any 1-year period in
which an issuer required to file an annual report under
subsection (a) does not file with the Commission a proxy
statement or an information statement relating to the election
of directors, the issuer shall disclose the information
required under paragraph (2) in the first annual report of
issuer that the issuer submits to the Commission after the end
of that 1-year period.
``(4) Annual report.--Not later than 18 months after the
date of enactment of this subsection, and annually thereafter,
the Commission shall submit to the Committee on Financial
Services of the House of Representatives and the Committee on
Banking, Housing, and Urban Affairs of the Senate, and publish
on the website of the Commission, a report that analyzes the
information disclosed under paragraphs (2) and (3) and
identifies any trends with respect to such information,
including breakdowns by each State (including the District of
Columbia and each territory of the United States), Tribal
government entity, and congressional district.
``(5) Best practices.--
``(A) In general.--The Director of the Office of
Minority and Women Inclusion of the Commission shall,
not later than 3 years after the date of enactment of
this subsection, and every 3 years thereafter, publish
best practices for compliance with this subsection.
``(B) Comments.--The Director of the Office of
Minority and Women Inclusion of the Commission may,
pursuant to subchapter II of chapter 5 of title 5,
United States Code, solicit public comments related to
the best practices published under subparagraph (A).''.
SEC. 432. DIVERSITY ADVISORY GROUP.
(a) Definitions.--For the purposes of this section:
(1) Advisory group.--The term ``Advisory Group'' means the
Diversity Advisory Group established under subsection (b).
(2) Commission.--The term ``Commission'' means the
Securities and Exchange Commission.
(3) Issuer.--The term ``issuer'' has the meaning given the
term in section 3(a) of the Securities Exchange Act of 1934 (15
U.S.C. 78c(a)).
(b) Establishment.--The Commission shall establish a Diversity
Advisory Group, which shall be composed of representatives from--
(1) the Federal Government and State and local governments;
(2) academia; and
(3) the private sector.
(c) Study and Recommendations.--The Advisory Group shall--
(1) carry out a study that identifies strategies that can
be used to increase gender, racial, and ethnic diversity, and
diversity with respect to individuals self-identifying as
lesbian, gay, bisexual, transgender, or queer, among members of
boards of directors of issuers; and
(2) not later than 270 days after the date on which the
Advisory Group is established, submit to the Commission, the
Committee on Financial Services of the House of
Representatives, and the Committee on Banking, Housing, and
Urban Affairs of the Senate a report that--
(A) describes any findings from the study conducted
under paragraph (1); and
(B) makes recommendations regarding strategies that
issuers could use to increase gender, racial, and
ethnic diversity, and diversity with respect to
individuals self-identifying as lesbian, gay, bisexual,
transgender, or queer, among board members.
(d) Annual Report.--Not later than 1 year after the date on which
the Advisory Group submits the report required under subsection (c)(2),
and annually thereafter, the Commission shall submit to the Committee
on Financial Services of the House of Representatives and the Committee
on Banking, Housing, and Urban Affairs of the Senate a report that
describes the status of gender, racial, and ethnic diversity, and the
status of diversity with respect to individuals self-identifying as
lesbian, gay, bisexual, transgender, or queer, among members of the
boards of directors of issuers, including breakdowns by each State
(including the District of Columbia and each territory of the United
States), Tribal government entity, and congressional district.
(e) Public Availability of Reports.--The Commission shall make all
reports of the Advisory Group available to issuers and the public,
including on the website of the Commission.
(f) Inapplicability of Federal Advisory Committee Act.--The Federal
Advisory Committee Act (5 U.S.C. App.) shall not apply with respect to
the Advisory Group or the activities of the Advisory Group.
Subtitle D--Ensuring Diversity in Community Banking
SEC. 441. SHORT TITLE.
This subtitle may be cited as the ``Ensuring Diversity in Community
Banking Act''.
SEC. 442. SENSE OF CONGRESS ON FUNDING THE LOAN-LOSS RESERVE FUND FOR
SMALL DOLLAR LOANS.
The sense of Congress is the following:
(1) The Community Development Financial Institutions Fund
(the ``CDFI Fund'') is an agency of the Department of the
Treasury, and was established by the Riegle Community
Development and Regulatory Improvement Act of 1994. The mission
of the CDFI Fund is ``to expand economic opportunity for
underserved people and communities by supporting the growth and
capacity of a national network of community development
lenders, investors, and financial service providers''. A
community development financial institution (a ``CDFI'') is a
specialized financial institution serving low-income
communities and a Community Development Entity (a ``CDE'') is a
domestic corporation or partnership that is an intermediary
vehicle for the provision of loans, investments, or financial
counseling in low-income communities. The CDFI Fund certifies
CDFIs and CDEs. Becoming a certified CDFI or CDE allows
organizations to participate in various CDFI Fund programs as
follows:
(A) The Bank Enterprise Award Program, which
provides FDIC-insured depository institutions awards
for a demonstrated increase in lending and investments
in distressed communities and CDFIs.
(B) The CDFI Program, which provides Financial and
Technical Assistance awards to CDFIs to reinvest in the
CDFI, and to build the capacity of the CDFI, including
financing product development and loan loss reserves.
(C) The Native American CDFI Assistance Program,
which provides CDFIs and sponsoring entities Financial
and Technical Assistance awards to increase lending and
grow the number of CDFIs owned by Native Americans to
help build capacity of such CDFIs.
(D) The New Market Tax Credit Program, which
provides tax credits for making equity investments in
CDEs that stimulate capital investments in low-income
communities.
(E) The Capital Magnet Fund, which provides awards
to CDFIs and nonprofit affordable housing organizations
to finance affordable housing solutions and related
economic development activities.
(F) The Bond Guarantee Program, a source of long-
term, patient capital for CDFIs to expand lending and
investment capacity for community and economic
development purposes.
(2) The Department of the Treasury is authorized to create
multi-year grant programs designed to encourage low-to-moderate
income individuals to establish accounts at federally insured
banks, and to improve low-to-moderate income individuals'
access to such accounts on reasonable terms.
(3) Under this authority, grants to participants in CDFI
Fund programs may be used for loan-loss reserves and to
establish small-dollar loan programs by subsidizing related
losses. These grants also allow for the providing recipients
with the financial counseling and education necessary to
conduct transactions and manage their accounts. These loans
provide low-cost alternatives to payday loans and other
nontraditional forms of financing that often impose excessive
interest rates and fees on borrowers, and lead millions of
Americans to fall into debt traps. Small-dollar loans can only
be made pursuant to terms, conditions, and practices that are
reasonable for the individual consumer obtaining the loan.
(4) Program participation is restricted to eligible
institutions, which are limited to organizations listed in
section 501(c)(3) of the Internal Revenue Code and exempt from
tax under 501(a) of such Code, federally insured depository
institutions, community development financial institutions and
State, local, or Tribal government entities.
(5) According to the CDFI Fund, some programs attract as
much as $10 in private capital for every $1 invested by the
CDFI Fund. The Administration and the Congress should
prioritize appropriation of funds for the loan loss reserve
fund and technical assistance programs administered by the
Community Development Financial Institution Fund.
SEC. 443. DEFINITIONS.
In this subtitle:
(1) Community development financial institution.--The term
``community development financial institution'' has the meaning
given under section 103 of the Riegle Community Development and
Regulatory Improvement Act of 1994 (12 U.S.C. 4702).
(2) Minority depository institution.--The term ``minority
depository institution'' has the meaning given under section
308 of the Financial Institutions Reform, Recovery, and
Enforcement Act of 1989 (12 U.S.C. 1463 note), as amended by
this Act.
SEC. 444. INCLUSION OF WOMEN'S BANKS IN THE DEFINITION OF MINORITY
DEPOSITORY INSTITUTION.
Section 308(b)(1) of the Financial Institutions Reform, Recovery,
and Enforcement Act of 1989 (12 U.S.C. 1463 note) is amended--
(1) by redesignating subparagraphs (A), (B), and (C) as
clauses (i), (ii), and (iii), respectively;
(2) by striking ``means any'' and inserting the following:
``means--
``(A) any''; and
(3) in clause (iii) (as so redesignated), by striking the
period at the end and inserting ``; or''; and
(4) by inserting at the end the following new subparagraph:
``(B) any bank described in clause (i), (ii), or
(iii) of section 19(b)(1)(A) of the Federal Reserve
Act--
``(i) more than 50 percent of the
outstanding shares of which are held by 1 or
more women; and
``(ii) the majority of the directors on the
board of directors of which are women.''.
SEC. 445. ESTABLISHMENT OF IMPACT BANK DESIGNATION.
(a) In General.--Each Federal banking agency shall establish a
program under which a depository institution with total consolidated
assets of less than $10,000,000,000 may elect to be designated as an
impact bank if the total dollar value of the loans extended by such
depository institution to low-income borrowers is greater than or equal
to 50 percent of the assets of such bank.
(b) Notification of Eligibility.--Based on data obtained through
examinations of depository institutions, the appropriate Federal
banking agency shall notify a depository institution if the institution
is eligible to be designated as an impact bank.
(c) Application.--Regardless of whether or not it has received a
notice of eligibility under subsection (b), a depository institution
may submit an application to the appropriate Federal banking agency--
(1) requesting to be designated as an impact bank; and
(2) demonstrating that the depository institution meets the
applicable qualifications.
(d) Limitation on Additional Data Requirements.--The Federal
banking agencies may only impose additional data collection
requirements on a depository institution under this section if such
data is--
(1) necessary to process an application submitted by the
depository institution to be designated an impact bank; or
(2) with respect to a depository institution that is
designated as an impact bank, necessary to ensure the
depository institution's ongoing qualifications to maintain
such designation.
(e) Removal of Designation.--If the appropriate Federal banking
agency determines that a depository institution designated as an impact
bank no longer meets the criteria for such designation, the appropriate
Federal banking agency shall rescind the designation and notify the
depository institution of such rescission.
(f) Reconsideration of Designation; Appeals.--Under such procedures
as the Federal banking agencies may establish, a depository institution
may--
(1) submit to the appropriate Federal banking agency a
request to reconsider a determination that such depository
institution no longer meets the criteria for the designation;
or
(2) file an appeal of such determination.
(g) Rulemaking.--Not later than 1 year after the date of the
enactment of this Act, the Federal banking agencies shall jointly issue
rules to carry out the requirements of this section, including by
providing a definition of a low-income borrower.
(h) Reports.--Each Federal banking agency shall submit an annual
report to the Congress containing a description of actions taken to
carry out this section.
(i) Federal Deposit Insurance Act Definitions.--In this section,
the terms ``depository institution'', ``appropriate Federal banking
agency'', and ``Federal banking agency'' have the meanings given such
terms, respectively, in section 3 of the Federal Deposit Insurance Act
(12 U.S.C. 1813).
SEC. 446. MINORITY DEPOSITORIES ADVISORY COMMITTEES.
(a) Establishment.--Each covered regulator shall establish an
advisory committee to be called the ``Minority Depositories Advisory
Committee''.
(b) Duties.--Each Minority Depositories Advisory Committee shall
provide advice to the respective covered regulator on meeting the goals
established by section 308 of the Financial Institutions Reform,
Recovery, and Enforcement Act of 1989 (12 U.S.C. 1463 note) to preserve
the present number of covered minority institutions, preserve the
minority character of minority-owned institutions in cases involving
mergers or acquisitions, provide technical assistance, and encourage
the creation of new covered minority institutions. The scope of the
work of each such Minority Depositories Advisory Committee shall
include an assessment of the current condition of covered minority
institutions, what regulatory changes or other steps the respective
agencies may be able to take to fulfill the requirements of such
section 308, and other issues of concern to covered minority
institutions.
(c) Membership.--
(1) In general.--Each Minority Depositories Advisory
Committee shall consist of no more than 10 members, who--
(A) shall serve for one two-year term;
(B) shall serve as a representative of a depository
institution or an insured credit union with respect to
which the respective covered regulator is the covered
regulator of such depository institution or insured
credit union; and
(C) shall not receive pay by reason of their
service on the advisory committee, but may receive
travel or transportation expenses in accordance with
section 5703 of title 5, United States Code.
(2) Diversity.--To the extent practicable, each covered
regulator shall ensure that the members of the Minority
Depositories Advisory Committee of such agency reflect the
diversity of covered minority institutions.
(d) Meetings.--
(1) In general.--Each Minority Depositories Advisory
Committee shall meet not less frequently than twice each year.
(2) Notice and invitations.--Each Minority Depositories
Advisory Committee shall--
(A) notify the Committee on Financial Services of
the House of Representatives and the Committee on
Banking, Housing, and Urban Affairs of the Senate in
advance of each meeting of the Minority Depositories
Advisory Committee; and
(B) invite the attendance at each meeting of the
Minority Depositories Advisory Committee of--
(i) one member of the majority party and
one member of the minority party of the
Committee on Financial Services of the House of
Representatives and the Committee on Banking,
Housing, and Urban Affairs of the Senate; and
(ii) one member of the majority party and
one member of the minority party of any
relevant subcommittees of such committees.
(e) No Termination of Advisory Committees.--The termination
requirements under section 14 of the Federal Advisory Committee Act (5
U.S.C. app.) shall not apply to a Minority Depositories Advisory
Committee established pursuant to this section.
(f) Definitions.--In this section:
(1) Covered regulator.--The term ``covered regulator''
means the Comptroller of the Currency, the Board of Governors
of the Federal Reserve System, the Federal Deposit Insurance
Corporation, and the National Credit Union Administration.
(2) Covered minority institution.--The term ``covered
minority institution'' means a minority depository institution
(as defined in section 308(b) of the Financial Institutions
Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 1463
note)).
(3) Depository institution.--The term ``depository
institution'' has the meaning given under section 3 of the
Federal Deposit Insurance Act (12 U.S.C. 1813).
(4) Insured credit union.--The term ``insured credit
union'' has the meaning given in section 101 of the Federal
Credit Union Act (12 U.S.C. 1752).
(g) Technical Amendment.--Section 308(b) of the Financial
Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C.
1463 note) is amended by adding at the end the following new paragraph:
``(3) Depository institution.--The term `depository
institution' means an `insured depository institution' (as
defined in section 3 of the Federal Deposit Insurance Act (12
U.S.C. 1813)) and an insured credit union (as defined in
section 101 of the Federal Credit Union Act (12 U.S.C.
1752)).''.
SEC. 447. FEDERAL DEPOSITS IN MINORITY DEPOSITORY INSTITUTIONS.
(a) In General.--Section 308 of the Financial Institutions Reform,
Recovery, and Enforcement Act of 1989 (12 U.S.C. 1463 note) is
amended--
(1) by adding at the end the following new subsection:
``(d) Federal Deposits.--The Secretary of the Treasury shall ensure
that deposits made by Federal agencies in minority depository
institutions and impact banks are collateralized or insured, as
determined by the Secretary. Such deposits shall include reciprocal
deposits as defined in section 337.6(e)(2)(v) of title 12, Code of
Federal Regulations (as in effect on March 6, 2019).''; and
(2) in subsection (b), as amended by section 6(g), by
adding at the end the following new paragraph:
``(4) Impact bank.--The term `impact bank' means a
depository institution designated by the appropriate Federal
banking agency pursuant to section 445 of the Ensuring
Diversity in Community Banking Act.''.
(b) Technical Amendments.--Section 308 of the Financial
Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C.
1463 note) is amended--
(1) in the matter preceding paragraph (1), by striking
``section--'' and inserting ``section:''; and
(2) in the paragraph heading for paragraph (1), by striking
``financial'' and inserting ``depository''.
SEC. 448. MINORITY BANK DEPOSIT PROGRAM.
(a) In General.--Section 1204 of the Financial Institutions Reform,
Recovery, and Enforcement Act of 1989 (12 U.S.C. 1811 note) is amended
to read as follows:
``SEC. 1204. EXPANSION OF USE OF MINORITY DEPOSITORY INSTITUTIONS.
``(a) Minority Bank Deposit Program.--
``(1) Establishment.--There is established a program to be
known as the `Minority Bank Deposit Program' to expand the use
of minority depository institutions.
``(2) Administration.--The Secretary of the Treasury,
acting through the Fiscal Service, shall--
``(A) on application by a depository institution or
credit union, certify whether such depository
institution or credit union is a minority depository
institution;
``(B) maintain and publish a list of all depository
institutions and credit unions that have been certified
pursuant to subparagraph (A); and
``(C) periodically distribute the list described in
subparagraph (B) to--
``(i) all Federal departments and agencies;
``(ii) interested State and local
governments; and
``(iii) interested private sector
companies.
``(3) Inclusion of certain entities on list.--A depository
institution or credit union that, on the date of the enactment
of this section, has a current certification from the Secretary
of the Treasury stating that such depository institution or
credit union is a minority depository institution shall be
included on the list described under paragraph (2)(B).
``(b) Expanded Use Among Federal Departments and Agencies.--
``(1) In general.--Not later than 1 year after the
establishment of the program described in subsection (a), the
head of each Federal department or agency shall develop and
implement standards and procedures to prioritize, to the
maximum extent possible as permitted by law and consistent with
principles of sound financial management, the use of minority
depository institutions to hold the deposits of each such
department or agency.
``(2) Report to congress.--Not later than 2 years after the
establishment of the program described in subsection (a), and
annually thereafter, the head of each Federal department or
agency shall submit to Congress a report on the actions taken
to increase the use of minority depository institutions to hold
the deposits of each such department or agency.
``(c) Definitions.--For purposes of this section:
``(1) Credit union.--The term `credit union' has the
meaning given the term `insured credit union' in section 101 of
the Federal Credit Union Act (12 U.S.C. 1752).
``(2) Depository institution.--The term `depository
institution' has the meaning given in section 3 of the Federal
Deposit Insurance Act (12 U.S.C. 1813).
``(3) Minority depository institution.--The term `minority
depository institution' has the meaning given that term under
section 308 of this Act.''.
(b) Conforming Amendments.--The following provisions are amended by
striking ``1204(c)(3)'' and inserting ``1204(c)'':
(1) Section 808(b)(3) of the Community Reinvestment Act of
1977 (12 U.S.C. 2907(b)(3)).
(2) Section 40(g)(1)(B) of the Federal Deposit Insurance
Act (12 U.S.C. 1831q(g)(1)(B)).
(3) Section 704B(h)(4) of the Equal Credit Opportunity Act
(15 U.S.C. 1691c-2(h)(4)).
SEC. 449. DIVERSITY REPORT AND BEST PRACTICES.
(a) Annual Report.--Each covered regulator shall submit to Congress
an annual report on diversity including the following:
(1) Data, based on voluntary self-identification, on the
racial, ethnic, and gender composition of the examiners of each
covered regulator, disaggregated by length of time served as an
examiner.
(2) The status of any examiners of covered regulators,
based on voluntary self-identification, as a veteran.
(3) Whether any covered regulator, as of the date on which
the report required under this section is submitted, has
adopted a policy, plan, or strategy to promote racial, ethnic,
and gender diversity among examiners of the covered regulator.
(4) Whether any special training is developed and provided
for examiners related specifically to working with depository
institutions and credit unions that serve communities that are
predominantly minorities, low income, or rural, and the key
focus of such training.
(b) Best Practices.--Each Office of Minority and Women Inclusion of
a covered regulator shall develop, provide to the head of the covered
regulator, and make publicly available best practices--
(1) for increasing the diversity of candidates applying for
examiner positions, including through outreach efforts to
recruit diverse candidate to apply for entry-level examiner
positions; and
(2) for retaining and providing fair consideration for
promotions within the examiner staff for purposes of achieving
diversity among examiners.
(c) Covered Regulator Defined.--In this section, the term ``covered
regulator'' means the Comptroller of the Currency, the Board of
Governors of the Federal Reserve System, the Federal Deposit Insurance
Corporation, and the National Credit Union Administration.
SEC. 450. INVESTMENTS IN MINORITY DEPOSITORY INSTITUTIONS AND IMPACT
BANKS.
(a) Control for Certain Institutions.--Section 7(j)(8)(B) of the
Federal Deposit Insurance Act (12 U.S.C. 1817(j)(8)(B)) is amended to
read as follows:
``(B) `control' means the power, directly or indirectly--
``(i) to direct the management or policies of an
insured depository institution; or
``(ii)(I) with respect to an insured depository
institution, of a person to vote 25 per centum or more
of any class of voting securities of such institution;
or
``(II) with respect to an insured depository
institution that is an impact bank (as designated
pursuant to section 445 of the Ensuring Diversity in
Community Banking Act) or a minority depository
institution (as defined in section 308(b) of the
Financial Institutions Reform, Recovery, and
Enforcement Act of 1989), of an individual to vote 30
percent or more of any class of voting securities of
such an impact bank or a minority depository
institution.''.
(b) Rulemaking.--The Federal banking agencies (as defined in
section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813)) shall
jointly issue rules for de novo minority depository institutions and de
novo impact banks (as designated pursuant to section 445) to allow 3
years to meet the capital requirements otherwise applicable to minority
depository institutions and impact banks.
(c) Report.--Not later than 1 year after the date of the enactment
of this Act, the Federal banking agencies shall jointly submit to
Congress a report on--
(1) the principal causes for the low number of de novo
minority depository institutions during the 10-year period
preceding the date of the report;
(2) the main challenges to the creation of de novo minority
depository institutions and de novo impact banks; and
(3) regulatory and legislative considerations to promote
the establishment of de novo minority depository institutions
and de novo impact banks.
SEC. 451. REPORT ON COVERED MENTOR-PROTEGE PROGRAMS.
(a) Report.--Not later than 6 months after the date of the
enactment of this Act and annually thereafter, the Secretary of the
Treasury shall submit to Congress a report on participants in a covered
mentor-protege program, including--
(1) an analysis of outcomes of such program;
(2) the number of minority depository institutions that are
eligible to participate in such program but do not have large
financial institution mentors; and
(3) recommendations for how to match such minority
depository institutions with large financial institution
mentors.
(b) Definitions.--In this section:
(1) Covered mentor-protege program.--The term ``covered
mentor-protege program'' means a mentor-protege program
established by the Secretary of the Treasury pursuant to
section 45 of the Small Business Act (15 U.S.C. 657r).
(2) Large financial institution.--The term ``large
financial institution'' means any entity--
(A) regulated by the Comptroller of the Currency,
the Board of Governors of the Federal Reserve System,
the Federal Deposit Insurance Corporation, or the
National Credit Union Administration; and
(B) that has total consolidated assets greater than
or equal to $50,000,000,000.
SEC. 452. CUSTODIAL DEPOSIT PROGRAM FOR COVERED MINORITY DEPOSITORY
INSTITUTIONS AND IMPACT BANKS.
(a) In General.--Not later than one year after the date of the
enactment of this Act, the Secretary of the Treasury shall issue rules
establishing a custodial deposit program under which a covered bank may
receive deposits from a qualifying account.
(b) Requirements.--In issuing rules under subsection (a), the
Secretary of the Treasury shall--
(1) consult with the Federal banking agencies;
(2) ensure each covered bank participating in the program
established under this section--
(A) has appropriate policies relating to management
of assets, including measures to ensure the safety and
soundness of each such covered bank; and
(B) is compliant with applicable law; and
(3) ensure, to the extent practicable that the rules do not
conflict with goals described in section 308(a) of the
Financial Institutions Reform, Recovery, and Enforcement Act of
1989 (12 U.S.C. 1463 note).
(c) Limitations.--
(1) Deposits.--With respect to the funds of an individual
qualifying account, an entity may not deposit an amount greater
than the insured amount in a single covered bank.
(2) Total deposits.--The total amount of funds deposited in
a covered bank under the custodial deposit program described
under this section may not exceed the lesser of--
(A) 10 percent of the average amount of deposits
held by such covered bank in the previous quarter; or
(B) $100,000,000 (as adjusted for inflation).
(d) Report.--Each quarter, the Secretary of the Treasury shall
submit to Congress a report on the implementation of the program
established under this section including information identifying
participating covered banks and the total amount of deposits received
by covered banks under the program, including breakdowns by each State
(including the District of Columbia and each territory of the United
States) and Tribal government entity.
(e) Definitions.--In this section:
(1) Covered bank.--The term ``covered bank'' means--
(A) a minority depository institution that is well
capitalized, as defined by the appropriate Federal
banking agency; or
(B) a depository institution designated pursuant to
section 445 of the Ensuring Diversity in Community
Banking Act that is well capitalized, as defined by the
appropriate Federal banking agency.
(2) Insured amount.--The term ``insured amount'' means the
amount that is the greater of--
(A) the standard maximum deposit insurance amount
(as defined in section 11(a)(1)(E) of the Federal
Deposit Insurance Act (12 U.S.C. 1821(a)(1)(E))); or
(B) such higher amount negotiated between the
Secretary of the Treasury and the Federal Deposit
Insurance Corporation under which the Corporation will
insure all deposits of such higher amount.
(3) Federal banking agencies.--The terms ``appropriate
Federal banking agency'' and ``Federal banking agencies'' have
the meaning given those terms, respectively, under section 3 of
the Federal Deposit Insurance Act.
(4) Qualifying account.--The term ``qualifying account''
means any account established in the Department of the Treasury
that--
(A) is controlled by the Secretary; and
(B) is expected to maintain a balance greater than
$200,000,000 for the following 24-month period.
SEC. 453. STREAMLINED COMMUNITY DEVELOPMENT FINANCIAL INSTITUTION
APPLICATIONS AND REPORTING.
(a) Application Processes.--Not later than 12 months after the date
of the enactment of this Act and with respect to any person having
assets under $3,000,000,000 that submits an application for deposit
insurance with the Federal Deposit Insurance Corporation that could
also become a community development financial institution, the Federal
Deposit Insurance Corporation, in consultation with the Administrator
of the Community Development Financial Institutions Fund, shall--
(1) develop systems and procedures to record necessary
information to allow the Administrator to conduct preliminary
analysis for such person to also become a community development
financial institution; and
(2) develop procedures to streamline the application and
annual certification processes and to reduce costs for such
person to become, and maintain certification as, a community
development financial institution.
(b) Implementation Report.--Not later than 18 months after the date
of the enactment of this Act, the Federal Deposit Insurance Corporation
shall submit to Congress a report describing the systems and procedures
required under subsection (a).
(c) Annual Report.--
(1) In general.--Section 17(a)(1) of the Federal Deposit
Insurance Act (12 U.S.C. 1827(a)(1)) is amended--
(A) in subparagraph (E), by striking ``and'' at the
end;
(B) by redesignating subparagraph (F) as
subparagraph (G);
(C) by inserting after subparagraph (E) the
following new subparagraph:
``(F) applicants for deposit insurance that could
also become a community development financial
institution (as defined in section 103 of the Riegle
Community Development and Regulatory Improvement Act of
1994), a minority depository institution (as defined in
section 308 of the Financial Institutions Reform,
Recovery, and Enforcement Act of 1989), or an impact
bank (as designated pursuant to section 445 of the
Ensuring Diversity in Community Banking Act); and''.
(2) Application.--The amendment made by this subsection
shall apply with respect to the first report to be submitted
after the date that is 2 years after the date of the enactment
of this Act.
SEC. 454. TASK FORCE ON LENDING TO SMALL BUSINESS CONCERNS.
(a) In General.--Not later than 6 months after the date of the
enactment of this Act, the Administrator of the Small Business
Administration shall establish a task force to examine methods for
improving relationships between the Small Business Administration and
community development financial institutions, minority depository
institutions, and impact banks (as designated pursuant to section 445)
to increase the volume of loans provided by such institutions to small
business concerns (as defined under section 3 of the Small Business Act
(15 U.S.C. 632)).
(b) Report to Congress.--Not later than 18 months after the
establishment of the task force described in subsection (a), the
Administrator of the Small Business Administration shall submit to
Congress a report on the findings of such task force.
Subtitle E--Expanding Opportunity for Minority Depository Institutions
SEC. 461. ESTABLISHMENT OF FINANCIAL AGENT MENTOR-PROTEGE PROGRAM.
(a) In General.--Section 308 of the Financial Institutions Reform,
Recovery, and Enforcement Act of 1989 (12 U.S.C. 1463 note) is amended
by adding at the end the following new subsection:
``(d) Financial Agent Mentor-Protege Program.--
``(1) In general.--The Secretary of the Treasury shall
establish a program to be known as the `Financial Agent Mentor-
Protege Program' (in this subsection referred to as the
`Program') under which a financial agent designated by the
Secretary or a large financial institution may serve as a
mentor, under guidance or regulations prescribed by the
Secretary, to a small financial institution to allow such small
financial institution--
``(A) to be prepared to perform as a financial
agent; or
``(B) to improve capacity to provide services to
the customers of the small financial institution.
``(2) Outreach.--The Secretary shall hold outreach events
to promote the participation of financial agents, large
financial institutions, and small financial institutions in the
Program at least once a year.
``(3) Exclusion.--The Secretary shall issue guidance or
regulations to establish a process under which a financial
agent, large financial institution, or small financial
institution may be excluded from participation in the Program.
``(4) Report.--The Office of Minority and Women Inclusion
of the Department of the Treasury shall include in the report
submitted to Congress under section 342(e) of the Dodd-Frank
Wall Street Reform and Consumer Protection Act information
pertaining to the Program, including--
``(A) the number of financial agents, large
financial institutions, and small financial
institutions participating in such Program, including
breakdowns by each State (including the District of
Columbia and each territory of the United States),
Tribal government entity, and congressional district;
and
``(B) the number of outreach events described in
paragraph (2) held during the year covered by such
report.
``(5) Definitions.--In this subsection:
``(A) Financial agent.--The term `financial agent'
means any national banking association designated by
the Secretary of the Treasury to be employed as a
financial agent of the Government.
``(B) Large financial institution.--The term `large
financial institution' means any entity regulated by
the Comptroller of the Currency, the Board of Governors
of the Federal Reserve System, the Federal Deposit
Insurance Corporation, or the National Credit Union
Administration that has total consolidated assets
greater than or equal to $50,000,000,000.
``(C) Small financial institution.--The term `small
financial institution' means--
``(i) any entity regulated by the
Comptroller of the Currency, the Board of
Governors of the Federal Reserve System, the
Federal Deposit Insurance Corporation, or the
National Credit Union Administration that has
total consolidated assets lesser than or equal
to $2,000,000,000; or
``(ii) a minority depository
institution.''.
(b) Effective Date.--This section and the amendments made by this
section shall take effect 90 days after the date of the enactment of
this Act.
TITLE V--COMMUNITY DEVELOPMENT
Subtitle A--CDFI Bond Guarantee Program Improvement
SEC. 511. SENSE OF CONGRESS.
It is the sense of Congress that the authority to guarantee bonds
under section 114A of the Community Development Banking and Financial
Institutions Act of 1994 (12 U.S.C. 4713a) (commonly referred to as the
``CDFI Bond Guarantee Program'') provides community development
financial institutions with a sustainable source of long-term capital
and furthers the mission of the Community Development Financial
Institutions Fund (established under section 104(a) of such Act (12
U.S.C. 4703(a)) to increase economic opportunity and promote community
development investments for underserved populations and distressed
communities in the United States.
SEC. 512. GUARANTEES FOR BONDS AND NOTES ISSUED FOR COMMUNITY OR
ECONOMIC DEVELOPMENT PURPOSES.
Section 114A of the Community Development Banking and Financial
Institutions Act of 1994 (12 U.S.C. 4713a) is amended--
(1) in subsection (c)(2), by striking ``, multiplied by an
amount equal to the outstanding principal balance of issued
notes or bonds'';
(2) in subsection (e)(2)(B), by striking ``$100,000,000''
and inserting ``$25,000,000''; and
(3) in subsection (k), by striking ``September 30, 2014''
and inserting ``the date that is 4 years after the date of
enactment of the CDFI Bond Guarantee Program Improvement Act of
2022''.
SEC. 513. REPORT ON THE CDFI BOND GUARANTEE PROGRAM.
Not later than 1 year after the date of enactment of this Act, and
not later than 3 years after such date of enactment, the Secretary of
the Treasury shall issue a report to the Committee on Financial
Services of the House of Representatives and the Committee on Banking,
Housing, and Urban Affairs of the Senate on the effectiveness of the
CDFI bond guarantee program established under section 114A of the
Community Development Banking and Financial Institutions Act of 1994
(12 U.S.C. 4713a).
Subtitle B--Expanding Financial Access for Underserved Communities
SEC. 521. CREDIT UNION SERVICE TO UNDERSERVED AREAS.
Section 109 of the Federal Credit Union Act (12 U.S.C. 1759) is
amended--
(1) in subsection (c)(2)--
(A) by striking ``the field of membership category
of which is described in subsection (b)(2),'';
(B) by amending subparagraph (A) to read as
follows:
``(A) the Board determines that the local
community, neighborhood, or rural district is an
underserved area; and''; and
(C) in subparagraph (B), by inserting ``not later
than 2 years after having such underserved area added
to the credit union's charter,'' before ``the credit
union''; and
(2) by adding at the end the following:
``(h) Change of Field of Membership to Include Underserved Areas.--
``(1) In general.--If an existing Federal credit union
applies to the Board to alter or expand the field of membership
of the credit union to serve an underserved area, the credit
union shall submit a business and marketing plan with such
application that explains the credit union's ability and intent
to serve the population of the underserved area through the
change in field of membership.
``(2) Report by credit union.--Not later than 2 years after
the date on which a Federal credit union's application
described under paragraph (1) is approved, the credit union, as
part of the ordinary course of the examination cycle and
supervision process, shall submit a report to the
Administration that includes--
``(A) an estimate of the number of members of the
credit union who are members by reason of the
application, including breakdowns by each State
(including the District of Columbia and each territory
of the United States), Tribal government entity, and
congressional district;
``(B) a description of the types of financial
services utilized by members of the credit union who
are members by reason of the application;
``(C) an update of the credit union's
implementation of the business and marketing plan
described under paragraph (1); and
``(D) a description of the types of financial
education programs made available to members of the
credit union, including those who are members by reason
of the application and those in rural areas, where
applicable.''.
SEC. 522. MEMBER BUSINESS LENDING IN UNDERSERVED AREAS.
Section 107A(c)(1)(B) of the Federal Credit Union Act (12 U.S.C.
1757a(c)(1)(B)) is amended--
(1) in clause (iv), by striking ``or'' at the end;
(2) in clause (v), by striking the period and inserting ``;
or''; and
(3) by adding at the end the following:
``(vi) that is made to a member or
associated borrower that lives in or operates
in an underserved area.''.
SEC. 523. UNDERSERVED AREA DEFINED.
Section 101 of the Federal Credit Union Act (12 U.S.C. 1752) is
amended--
(1) in paragraph (8), by striking ``; and'' and inserting a
period;
(2) in paragraph (9), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(10) The term `underserved area' means a geographic area
consisting of one or more population census tracts or one or
more counties, that encompass or are located within--
``(A) an investment area, as defined under section
103(16) of the Community Development Banking and
Financial Institutions Act of 1994;
``(B) groups of contiguous census tracts in which
at least 85 percent individually qualify as low-income
communities, as defined under section 45D(e) of the
Internal Revenue Code of 1986; or
``(C) an area that is more than ten miles, as
measured from each point along the area's perimeter,
from the nearest branch of a depository institution (as
defined under section 3 of the Federal Deposit
Insurance Act) or credit union.''.
SEC. 524. REPORTS BY THE NATIONAL CREDIT UNION ADMINISTRATION.
(a) Initial Report.--Not later than 3 years after the date of
enactment of this Act, but no sooner than 2 years after the date of
enactment of this Act, the National Credit Union Administration shall
issue a report to the Committee on Financial Services of the House of
Representatives and the Committee on Banking, Housing, and Urban
Affairs of the Senate on the implementation of the amendments made by
this subtitle.
(b) Update.--The National Credit Union Administration shall issue
an updated report on the implementation of the amendments made by this
subtitle to the committees described under subsection (a) on the date
that is 5 years after the date on which the Administration issues the
initial report under subsection (a).
SEC. 525. RULE OF CONSTRUCTION.
Nothing in this subtitle or the amendments made by this subtitle
may be construed to prevent or otherwise impede the ability of insured
depository institutions (as defined in section 3 of the Federal Deposit
Insurance Act) to establish branches and provide banking services in
underserved areas.
TITLE VI--ENSURING DIVERSE LEADERSHIP OF THE FEDERAL RESERVE
SEC. 601. SHORT TITLE.
This title may be cited as the ``Ensuring Diverse Leadership Act of
2022''.
SEC. 602. CONGRESSIONAL FINDINGS.
The Congress finds that--
(1) while significant progress has occurred due to the
antidiscrimination amendments to the Federal Reserve Act,
barriers continue to pose significant obstacles for candidates
reflective of gender diversity and racial or ethnic diversity
for Federal Reserve bank president positions in the Federal
Reserve System;
(2) the continuing barriers described in paragraph (1)
merit the following amendment;
(3) Congress has received and reviewed testimony and
documentation of the historical lack of gender, racial, and
ethnic diversity from numerous sources, including congressional
hearings, scientific reports, reports issued by public and
private agencies, news stories, and reports of related barriers
by organizations and individuals, which show that
race-, ethnicity-, and gender-neutral efforts alone are
insufficient to address the problem;
(4) the testimony and documentation described in paragraph
(3) demonstrate that barriers across the United States prove
problematic for full and fair participation in developing
monetary policy by individuals reflective of gender diversity
and racial or ethnic diversity; and
(5) the testimony and documentation described in paragraph
(3) provide a strong basis that there is a compelling need for
the below amendment to address the historical lack of gender,
racial, and ethnic diversity in the Federal Reserve regional
bank presidents selection process in the Federal Reserve
System.
SEC. 603. FEDERAL RESERVE BANK PRESIDENTS.
(a) In General.--The provision designated ``fifth'' of the fourth
undesignated paragraph of section 4 of the Federal Reserve Act (12
U.S.C. 341) is amended by inserting after ``employees.'' the following:
``In making the appointment of a president, the bank shall interview at
least one individual reflective of gender diversity and one individual
reflective of racial or ethnic diversity.''.
(b) Report.--Not later than January 1 of each year, each Federal
reserve bank shall submit to the Committee on Banking, Housing, and
Urban Affairs of the Senate, the Committee on Financial Services of the
House of Representatives, and the Office of Inspector General for the
Board of Governors of the Federal Reserve System and the Bureau of
Consumer Financial Protection a report describing the applicant pool
demographic for the position of the president of the Federal reserve
bank for the preceding fiscal year, if applicable.
SEC. 604. TECHNICAL ADJUSTMENTS.
(a) American Competitiveness and Workforce Improvement Act of
1998.--Section 418(b) of the American Competitiveness and Workforce
Improvement Act of 1998 (8 U.S.C. 1184 note) is amended by striking
``Chairman of the Board of Governors'' and inserting ``Chair of the
Board of Governors''.
(b) Bretton Woods Agreements Act.--The Bretton Woods Agreements Act
(22 U.S.C. 286 et seq.) is amended--
(1) in section 4(a), by striking ``Chairman of the Board of
Governors'' and inserting ``Chair of the Board of Governors'';
and
(2) in section 45(a)(1), by striking ``chairman of the
board of Governors'' and inserting ``Chair of the Board of
Governors''.
(c) Dodd-Frank Wall Street Reform and Consumer Protection Act.--The
Dodd-Frank Wall Street Reform and Consumer Protection Act (12 U.S.C.
5301 et seq.) is amended by striking ``Chairman of the Board'' each
place such term appears and inserting ``Chair of the Board''.
(d) Emergency Economic Stabilization Act of 2008.--The Emergency
Economic Stabilization Act of 2008 (12 U.S.C. 5201 et seq.) is amended
by striking ``Chairman of the Board'' each place such term appears and
inserting ``Chair of the Board''.
(e) Emergency Loan Guarantee Act.--Section 2 of the Emergency Loan
Guarantee Act (15 U.S.C. 1841) is amended by striking ``Chairman of the
Board of Governors'' and inserting ``Chair of the Board of Governors''.
(f) Emergency Steel Loan Guarantee and Emergency Oil and Gas
Guaranteed Loan Act of 1999.--The Emergency Steel Loan Guarantee and
Emergency Oil and Gas Guaranteed Loan Act of 1999 (15 U.S.C. 1841 note)
is amended--
(1) in section 101(e)(2)--
(A) by striking ``Chairman of the Board of
Governors'' and inserting ``Chair of the Board of
Governors''; and
(B) by striking ``Chairman,'' and inserting
``Chair,''; and
(2) in section 201(d)(2)(B)--
(A) by striking ``Chairman of the Board of
Governors'' and inserting ``Chair of the Board of
Governors''; and
(B) by striking ``Chairman,'' and inserting
``Chair,''.
(g) Farm Credit Act of 1971.--Section 4.9(d)(1)(C) of the Farm
Credit Act of 1971 (12 U.S.C. 2160(d)(1)(C)) is amended by striking
``Chairman of the Board of Governors'' and inserting ``Chair of the
Board of Governors''.
(h) Federal Deposit Insurance Act.--The Federal Deposit Insurance
Act (12 U.S.C. 1811 et seq.) is amended--
(1) in section 7(a)(3), by striking ``Chairman of the Board
of Governors'' and inserting ``Chair of the Board of
Governors''; and
(2) in section 10(k)(5)(B)(ii), by striking ``Chairman of
the Board of Governors'' and inserting ``Chair of the Board of
Governors''.
(i) Federal Reserve Act.--The Federal Reserve Act (12 U.S.C. 226 et
seq.) is amended--
(1) by striking ``chairman'' each place such term appears
and inserting ``chair'';
(2) by striking ``Chairman'' each place such term appears
other than in section 11(r)(2)(B) and inserting ``Chair'';
(3) in section 2, in the sixth undesignated paragraph--
(A) in the second sentence, by striking ``his'' and
inserting ``the Comptroller of the Currency's''; and
(B) in the third sentence, by striking ``his'' and
inserting ``the director's'';
(4) in section 4--
(A) in the third undesignated paragraph, by
striking ``his office'' and inserting ``the Office of
the Comptroller of the Currency'';
(B) in the fourth undesignated paragraph, in the
provision designated ``fifth'', by striking ``his'' and
inserting ``the person's'';
(C) in the eighth undesignated paragraph, by
striking ``his'' and inserting ``the chair's'';
(D) in the seventeenth undesignated paragraph--
(i) by striking ``his'' and inserting ``the
officer's''; and
(ii) by striking ``he'' and inserting ``the
individual'';
(E) in the twentieth undesignated paragraph--
(i) by striking ``He'' each place such term
appears and inserting ``The chair'';
(ii) in the third sentence--
(I) by striking ``his'' and
inserting ``the''; and
(II) by striking ``he'' and
inserting a comma; and
(iii) in the fifth sentence, by striking
``he'' and inserting ``the chair''; and
(F) in the twenty-first undesignated paragraph, by
striking ``his'' each place such term appears and
inserting ``the agent's'';
(5) in section 6, in the second undesignated paragraph, by
striking ``he'' and inserting ``the Comptroller of the
Currency'';
(6) in section 9A(c)(2)(C), by striking ``he'' and
inserting ``the participant'';
(7) in section 10--
(A) by striking ``he'' each place such term appears
and inserting ``the member'';
(B) in the second undesignated paragraph, by
striking ``his'' and inserting ``the member's''; and
(C) in the fourth undesignated paragraph--
(i) in the second sentence, by striking
``his'' and inserting ``the chair's'';
(ii) in the fifth sentence, by striking
``his'' and inserting ``the member's''; and
(iii) in the sixth sentence, by striking
``his'' and inserting ``the member's'';
(8) in section 12, by striking ``his'' and inserting ``the
member's'';
(9) in section 13, in the tenth undesignated paragraph, by
striking ``his'' and inserting ``the assured's'';
(10) in section 16--
(A) by striking ``he'' each place such term appears
and inserting ``the agent'';
(B) in the seventh undesignated paragraph--
(i) by striking ``his'' and inserting ``the
agent's''; and
(ii) by striking ``himself'' and inserting
``the agent'';
(C) in the tenth undesignated paragraph, by
striking ``his'' and inserting ``the Secretary's''; and
(D) in the fifteenth undesignated paragraph, by
striking ``his'' and inserting ``the agent's'';
(11) in section 18, in the eighth undesignated paragraph,
by striking ``he'' and inserting ``the Secretary of the
Treasury'';
(12) in section 22--
(A) in subsection (f), by striking ``his'' and
inserting ``the director's or officer's''; and
(B) in subsection (g)--
(i) in paragraph (1)(D)--
(I) by striking ``him'' and
inserting ``the officer''; and
(II) by striking ``he'' and
inserting ``the officer''; and
(ii) in paragraph (2)(A), by striking ``him
as his'' and inserting ``the officer as the
officer's''; and
(13) in section 25A--
(A) in the twelfth undesignated paragraph--
(i) by striking ``he'' each place such term
appears and inserting ``the member''; and
(ii) by striking ``his'' and inserting
``the member's'';
(B) in the fourteenth undesignated paragraph, by
striking ``his'' and inserting ``the director's or
officer's''; and
(C) in the twenty-second undesignated paragraph, by
striking ``his'' each place such term appears and
inserting ``such individual's''.
(j) Federal Reserve Reform Act of 1977.--Section 204(b) of the
Federal Reserve Reform Act of 1977 (12 U.S.C. 242 note) is amended by
striking ``Chairman or Vice Chairman of the Board of Governors'' and
inserting ``Chair or Vice Chair of the Board of Governors''.
(k) Financial Institutions Reform, Recovery, and Enforcement Act of
1989.--The Financial Institutions Reform, Recovery, and Enforcement Act
of 1989 is amended--
(1) in section 308 (12 U.S.C. 1463 note)--
(A) in subsection (a), by striking ``Chairman of
the Board of Governors'' and inserting ``Chair of the
Board of Governors''; and
(B) in subsection (c), by striking ``Chairman of
the Board of Governors'' and inserting ``Chair of the
Board of Governors'';
(2) in section 1001(a) (12 U.S.C. 1811 note), by striking
``Chairman of the Board of Governors'' and inserting ``Chair of
the Board of Governors''; and
(3) in section 1205(b)(1)(A) (12 U.S.C. 1818 note)--
(A) by striking ``Chairman of the Board of
Governors'' and inserting ``Chair of the Board of
Governors''; and
(B) by striking ``Chairman's'' and inserting
``Chair's''.
(l) Food, Conservation, and Energy Act of 2008.--Section 13106(a)
of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 2 note) is
amended by striking ``Chairman of the Board of Governors'' and
inserting ``Chair of the Board of Governors''.
(m) Housing and Community Development Act of 1992.--Section
1313(a)(3) of the Housing and Community Development Act of 1992 (12
U.S.C. 4513(a)(3)) is amended--
(1) in the heading, by striking ``chairman'' and inserting
``chair'';
(2) by striking ``Chairman of the Board of Governors'' and
inserting ``Chair of the Board of Governors''; and
(3) by striking ``Chairman regarding'' and inserting
``Chair regarding''.
(n) Inspector General Act of 1978.--Section 8G of the Inspector
General Act of 1978 is amended by striking ``Chairman of the Board of
Governors'' each place such term appears and inserting ``Chair of the
Board of Governors''.
(o) International Lending Supervision Act of 1983.--Section
908(b)(3)(C) of the International Lending Supervision Act of 1983 (12
U.S.C. 3907(b)(3)(C)) is amended by striking ``Chairman of the Board of
Governors'' and inserting ``Chair of the Board of Governors''.
(p) Neighborhood Reinvestment Corporation Act.--Section 604(a)(3)
of the Neighborhood Reinvestment Corporation Act (42 U.S.C. 8103(a)(3))
is amended by striking ``Chairman'' each place it appears and inserting
``Chair''.
(q) Public Law 93-495.--Section 202(a)(1) of Public Law 93-495 (12
U.S.C. 2402(a)(1)) is amended--
(1) by striking ``Chairman of the Board of Governors'' and
inserting ``Chair of the Board of Governors''; and
(2) by striking ``his'' and inserting ``the Chair's''.
(r) Sarbanes-Oxley Act of 2002.--Section 101(e)(4)(A) of the
Sarbanes-Oxley Act of 2002 (15 U.S.C. 7211(e)(4)(A)) is amended by
striking ``Chairman of the Board of Governors'' and inserting ``Chair
of the Board of Governors''.
(s) Securities Exchange Act of 1934.--Section 17A(f)(4)(C) of the
Securities Exchange Act of 1934 (15 U.S.C. 78q-1(f)(4)(C)) is amended
by striking ``Chairman of the Board of Governors'' and inserting
``Chair of the Board of Governors''.
(t) Title 31.--Title 31, United States Code, is amended--
(1) in section 1344(b)(7), by striking ``Chairman of the
Board of Governors'' and inserting ``Chair of the Board of
Governors''; and
(2) in section 5318A, by striking ``Chairman of the Board
of Governors'' each place such term appears and inserting
``Chair of the Board of Governors''.
(u) Trade Act of 1974.--Section 163(b)(3) of the Trade Act of 1974
(19 U.S.C. 2213(b)(3)) is amended by striking ``Chairman of the Board
of Governors'' and inserting ``Chair of the Board of Governors''.
(v) Deeming of Name.--Any reference in a law, regulation, document,
paper, or other record of the United States to the Chairman of the
Board of Governors of the Federal Reserve System shall be deemed to be
a reference to the Chair of the Board of Governors of the Federal
Reserve System.
TITLE VII--STUDYING BARRIERS TO HOUSING
SEC. 701. SHORT TITLE.
This title may be cited as the ``Studying Barriers to Housing
Act''.
SEC. 702. GAO STUDY AND REPORT ON REDUCING HOMELESSNESS THROUGH PUBLIC
HOUSING AND SECTION 8 RENTAL ASSISTANCE.
(a) Study.--The Comptroller General of the United States shall
conduct a study to identify any barriers that limit the ability of a
public housing agency in attempting to provide housing assistance under
the Public Housing and Housing Choice Voucher programs under title I of
the United States Housing Act of 1937 (42 U.S.C. 1437 et seq.) for
populations experiencing homelessness, which shall include--
(1) identification of any laws, regulations, and any other
notices or guidance pertaining to--
(A) waiting lists, documentation requirements, or
tenant screening that effect the ability of a public
housing agency to accept persons and families
experiencing homelessness into the public housing or
voucher program; and
(B) funding formulas and performance measures that
may penalize public housing agencies trying to serve
persons and families experiencing homelessness;
(2) analyzing and determining the effect of the limitation
under section 8(o)(13)(B) of the United States Housing Act of
1937 (42 U.S.C. 1437f(o)(13)(B); relating to the maximum amount
of housing voucher assistance that a public housing agency may
use for project-based assistance) has on the ability of public
housing agencies to serve persons and families experiencing
homelessness; and
(3) identification of barriers to fair housing and the
coordination of Federal housing assistance and homelessness
funds, including outreach and marketing of such funds, to
affirmatively further fair housing for protected classes under
the Fair Housing Act of 1968 (42 U.S.C. 3601 et seq.) that are
disproportionately experiencing homelessness.
(b) Report.--Not later than the expiration of the 12-month period
beginning on the date of the enactment of this Act, the Comptroller
General shall submit a report to the Congress describing the study
conducted pursuant to subsection (a) and setting forth the results and
conclusions of the study.
TITLE VIII--STATE OF HOUSING IN THE UNITED STATES
SEC. 801. INTERAGENCY WORKING GROUP REPORTS.
There is established an interagency working group consisting of the
Secretary of the Treasury, the Secretary of Housing and Urban
Development, and the Director of the Federal Housing Finance Agency,
which shall produce two reports, in consultation with the Attorney
General, the Secretary of Agriculture, the Secretary of Veterans
Affairs, the Secretary of Transportation, and the Executive Director of
the United States Interagency Council on Homelessness, each year
detailing the state of housing in the United States, including
recommendations related to housing fairness, affordability. and supply.
SEC. 802. TESTIMONY ON THE STATE OF HOUSING AFFORDABILITY AND SUPPLY.
After each report is produced under section 601, each member of the
interagency working group described under section 601 shall appear
before the Committee on Financial Services of the House of
Representatives and the Committee on Banking, Housing, and Urban
Affairs of the Senate to testify on the contents of such report.
TITLE XI--REPORT ON HOUSING FOR LGBTQ+ PERSONS
SEC. 901. HUD REPORT.
Not later than the expiration of the 6-month period beginning on
the date of the enactment of this Act, the Secretary of Housing and
Urban Development shall submit a report to the Congress describing all
efforts and activities of the Department of Housing and Urban
Development, recently taken, ongoing, or planned, to provide or
facilitate access to affordable permanent and temporary housing for
persons who identify as lesbian, gay, bisexual, transgender,
questioning/queer, or another identity other than heterosexual,
including such person who are youth, elderly, and homeless.
TITLE X--EXPANDING ACCESS TO CREDIT THROUGH CONSUMER-PERMISSIONED DATA
SEC. 1001. SHORT TITLE.
This title may be cited as the ``Expanding Access to Credit through
Consumer-Permissioned Data Act''.
SEC. 1002. FINDINGS.
The Congress finds the following:
(1) Using alternative data in mortgage lending (either
through alternative credit scores or in underwriting) has the
potential to increase access to credit for individuals with
little or no credit history with the national credit reporting
agencies (NCRAs), according to a review of alternative data use
in mortgage lending by the Government Accountability Office in
December 2021.
(2) Approximately 45 million consumers do not have any
credit history with the NCRAs or did not have enough credit
history to be scored, according to a 2015 report by the Bureau
of Consumer Financial Protection (CFPB), entitled ``Data Point:
Credit Invisibles''. The CFPB also reported that this
population disproportionately included low-income consumers,
younger consumers, and consumers of color.
(3) The use of alternative data to establish a low- or
moderate-income borrower's credit history for the purpose of
extending mortgage credit can help lenders meet goals of the
Community Reinvestment Act.
(4) Mortgage underwriting systems that allow lenders to use
consumer-permissioned alternative credit information may help
expand access to mortgages for borrowers with lower credit
scores and communities of color. On September 21, 2021, Fannie
Mae updated its automated underwriting system so that it
notifies lenders that a borrower may benefit from the inclusion
of consistent rental payment information, and with the
consumer's permission, the underwriting system will
automatically identify rental payments within bank statement
data and include this in its credit assessment. According to a
fair lending and credit risk analysis by Fannie Mae and the
Federal Housing Finance Agency, the populations most likely to
benefit from this change are applicants with lower credit
scores, who are disproportionately consumers of color.
SEC. 1003. REQUIREMENT TO CONSIDER ADDITIONAL CREDIT INFORMATION WHEN
MAKING MORTGAGE LOANS.
(a) In General.--The Equal Credit Opportunity Act (15 U.S.C. 1691
et seq.) is amended by inserting after section 701 the following:
``Sec. 701A. Requirement to consider additional credit information when
making mortgage loans
``(a) In General.--A creditor extending a mortgage loan shall, in
evaluating the creditworthiness of an applicant, consider credit
information not reported through a consumer reporting agency, if--
``(1) the applicant--
``(A) requests such consideration, and has not
retracted such request;
``(B) provides the credit information to be
considered; and
``(C) states that the applicant does not believe
that credit information reported through consumer
reporting agencies fully or accurately reflects the
applicant's creditworthiness in the absence of such
information; and
``(2) the credit information relates to the types of
information that the creditor would consider if otherwise
reported and includes current payment and transaction
information, such as bank statement information or rental
payment information.
``(b) Treatment of Additional Information.--A creditor shall treat
any information provided pursuant to subsection (a) in the same manner
and with the same weight as the creditor would treat the same
information if it were provided by a consumer reporting agency, unless
the creditor reasonably determines that the information is the result
of a material misrepresentation.
``(c) Notice to Applicants.--
``(1) In general.--A creditor described under subsection
(a) shall provide each applicant for a mortgage loan with a
notice that includes--
``(A) an explanation of the applicant's right under
this section to provide additional credit information
to the creditor for consideration, including examples
of such additional information, as well as the benefits
of providing such information;
``(B) the right of the creditor to disregard any
such information if the creditor determines that the
information is the result of a material
misrepresentation; and
``(C) the right of an applicant to retract the
applicant's request to use such additional credit
information at any point in the application process.
``(2) Notice languages.--Notices required under paragraph
(1) shall be made available in each of the 8 languages most
commonly spoken by individuals with limited English
proficiency, as determined by the Director of the Bureau using
information published by the Director of the Bureau of the
Census.
``(3) Form language.--The Director of the Bureau shall
establish form language, which shall be used by each creditor
when providing the notices required under this subsection,
providing--
``(A) the examples described under paragraph
(1)(A);
``(B) the description of the benefits described
under paragraph (1)(A); and
``(C) the non-English language versions of the
notices described under paragraph (2).
``(d) Consideration of Alternative Data; Treatment of Underwriting
Systems.--A creditor shall ensure that the alternative data provided
under the requirements of subsection (a) shall be considered as part of
the decisioning process. Any creditor who develops or maintains an
underwriting system for mortgage loans shall ensure such system
complies with the requirements described under subsection (a).
``(e) Consumer Reporting Agency Defined.--In this section, the term
`consumer reporting agency' has the meaning given that term under
section 603 of the Fair Credit Reporting Act.''.
(b) Clerical Amendment.--The table of contents for the Equal Credit
Opportunity Act is amended by inserting after the item relating to
section 701 the following:
``701A. Requirement to consider additional credit information when
making mortgage loans.''.
TITLE XI--PAYMENT CHOICE
SEC. 1101. SHORT TITLE.
This subtitle may be cited as the ``Payment Choice Act of 2022''.
SEC. 1102. SENSE OF CONGRESS.
It is the sense of Congress that every consumer has the right to
use cash at retail businesses who accept in-person payments.
SEC. 1103. RETAIL BUSINESSES PROHIBITED FROM REFUSING CASH PAYMENTS.
(a) In General.--Subchapter I of chapter 51 of title 31, United
States Code, is amended by adding at the end the following:
``Sec. 5104. Retail businesses prohibited from refusing cash payments
``(a) In General.--Any person engaged in the business of selling or
offering goods or services at retail to the public with a person
accepting in-person payments at a physical location (including a person
accepting payments for telephone, mail, or internet-based transactions
who is accepting in-person payments at a physical location)--
``(1) shall accept cash as a form of payment for sales of
less than $2,000 (or, for loan payments, payments made on a
loan with an original principal amount of less than $2,000)
made at such physical location; and
``(2) may not charge cash-paying customers a higher price
compared to the price charged to customers not paying with
cash.
``(b) Exceptions.--
``(1) In general.--Subsection (a) shall not apply to a
person if such person--
``(A) is unable to accept cash because of--
``(i) a sale system failure that
temporarily prevents the processing of cash
payments; or
``(ii) a temporary insufficiency in cash on
hand needed to provide change; or
``(B) provides customers with the means, on the
premises, to convert cash into a card that is either a
general-use prepaid card, a gift card, or an access
device for electronic fund transfers for which--
``(i) there is no fee for the use of the
card;
``(ii) there is not a minimum deposit
amount greater than 1 dollar;
``(iii) amounts loaded on the card do not
expire, except as permitted under paragraph
(2);
``(iv) there is no collection of any
personal identifying information from the
customer;
``(v) there is no fee to use the card; and
``(iv) there may be a limit to the number
of transactions.
``(2) Inactivity.--A person seeking exception from
subsection (a) may charge an inactivity fee in association with
a card offered by such person if--
``(A) there has been no activity with respect to
the card during the 12-month period ending on the date
on which the inactivity fee is imposed;
``(B) not more than 1 inactivity fee is imposed in
any 1-month period; and
``(C) it is clearly and conspicuously stated, on
the face of the mechanism that issues the card and on
the card--
``(i) that an inactivity fee or charge may
be imposed;
``(ii) the frequency at which such
inactivity fee may be imposed; and
``(iii) the amount of such inactivity fee.
``(c) Right to Not Accept Large Bills.--
``(1) In general.--Notwithstanding subsection (a), for the
5-year period beginning on the date of enactment of this
section, this section shall not require a person to accept cash
payments in $50 bills or any larger bill.
``(2) Rulemaking.--
``(A) In general.--The Secretary of the Treasury,
in this section referred to as the Secretary, shall
issue a rule on the date that is 5 years after the date
of the enactment of this section with respect to any
bills a person is not required to accept.
``(B) Requirement.--When issuing a rule under
subparagraph (A), the Secretary shall require persons
to accept $1, $5, $10, $20, and $50 bills.
``(d) Enforcement.--
``(1) Preventative relief.--Whenever any person has
engaged, or there are reasonable grounds to believe that any
person is about to engage, in any act or practice prohibited by
this section, a civil action for preventive relief, including
an application for a permanent or temporary injunction,
restraining order, or other order may be brought against such
person.
``(2) Civil penalties.--Any person who violates this
section shall--
``(A) be liable for actual damages;
``(B) be fined not more than $2,500 for a first
offense; and
``(C) be fined not more than $5,000 for a second or
subsequent offense.
``(3) Jurisdiction.--An action under this section may be
brought in any United States district court, or in any other
court of competent jurisdiction.
``(4) Intervention of attorney general.--Upon timely
application, a court may, in its discretion, permit the
Attorney General to intervene in a civil action brought under
this subsection, if the Attorney General certifies that the
action is of general public importance.
``(5) Authority to appoint court-paid attorney.--Upon
application by an individual and in such circumstances as the
court may determine just, the court may appoint an attorney for
such individual and may authorize the commencement of a civil
action under this subsection without the payment of fees,
costs, or security.
``(6) Attorney's fees.--In any action commenced pursuant to
this section, the court, in its discretion, may allow the
prevailing party, other than the United States, a reasonable
attorney's fee as part of the costs, and the United States
shall be liable for costs the same as a private person.
``(7) Requirements in certain states and local areas.--In
the case of an alleged act or practice prohibited by this
section which occurs in a State, or political subdivision of a
State, which has a State or local law prohibiting such act or
practice and establishing or authorizing a State or local
authority to grant or seek relief from such act or practice or
to institute criminal proceedings with respect thereto upon
receiving notice thereof, no civil action may be brought
hereunder before the expiration of 30 days after written notice
of such alleged act or practice has been given to the
appropriate State or local authority by registered mail or in
person, provided that the court may stay proceedings in such
civil action pending the termination of State or local
enforcement proceedings.
``(e) Greater Protection Under State Law.--This section shall not
preempt any law of a State, the District of Columbia, a Tribal
government, or a territory of the United States if the protections that
such law affords to consumers are greater than the protections provided
under this section.
``(f) Rulemaking.--The Secretary shall issue such rules as the
Secretary determines are necessary to implement this section, which may
prescribe additional exceptions to the application of the requirements
described in subsection (a).''.
(b) Clerical Amendment.--The table of contents for chapter 51 of
title 31, United States Code, is amended by inserting after the item
relating to section 5103 the following:
``5104. Retail businesses prohibited from refusing cash payments.''.
(c) Rule of Construction.--The amendments made by this section may
not be construed to have any effect on section 5103 of title 31, United
States Code.
Passed the House of Representatives June 15, 2022.
Attest:
Clerk.
117th CONGRESS
2d Session
H. R. 2543
_______________________________________________________________________
AN ACT
To amend the Federal Reserve Act to add additional demographic
reporting requirements, to modify the goals of the Federal Reserve
System, and for other purposes.